Three in ten employers will abandon offering health coverage to their employees when President Barack Obama’s Affordable Care Act takes effect in 2014, according to a survey published by McKinsey Quarterly.
While only 7 percent of employees will be forced to switch to subsidized-exchange programs, 30 percent of companies say they will “definitely or probably” stop offering employer-sponsored coverage, according to the study published by McKinsey Quarterly.
“At least 30 percent of employers would gain economically from dropping coverage, even if they completely compensated employees for the change through other benefit offerings or higher salaries,” the study says, according to Market Watch.
|President Barack Obama
(Getty Images photo)
That doesn’t mean too many people are going to quit due to health coverage issues, the study adds.
“Contrary to what employers assume, more than 85 percent of employees would remain at their jobs even if their employers stopped offering [employer-sponsored insurance], although about 60 percent would expect increased compensation.”
As the 2012 presidential elections approach, potential and confirmed Republican contenders are vowing to repeal the so-called Obamacare, including former Speaker of the House Newt Gingrich.
"In addition to the unconstitutional nature of individual and employer mandates, we are learning that they simply don't work," Gingrich says, according to CNN.
Such measures require the government to specify exactly what coverage must be included in insurance for it to qualify, Gingrich adds.
"The resulting costs to the taxpayer — and strain on the budget — lead the government to try and control healthcare costs by limiting healthcare services. The inevitable result is rationing by a nameless, faceless, unaccountable board of government bureaucrats."
© 2016 Newsmax Finance. All rights reserved.