The Obamacare Effect: Most Private Sector Employers to Drop Employee Health Insurance

Almost a third of private-sector employers will drop their employee health insurance coverage when Obamacare's government-managed insurance exchanges come online, reports campaign2012.washingtonexaminer.com Howard Dean, former Democratic National Committee Chairman, and doctor, backed a McKinsey survey and told Morning Joe, "There was a McKinsey study, which the Democrats don't like, but I do, and I think it’s true. Most small businesses are not going to be in the health insurance business anymore after this thing goes into effect."

The reason Democrats fought so hard to dismiss the McKinsey survey when it was released is because its conclusion undermines two major claims Obama made during the health care debate: "If you like your health plan, you can keep it" and "It will not add one penny to the deficit."

Fellow Morning Joe guest, former New York Gov. George Pataki immediately hit the first point: "The only way it’s a help is if they drop coverage and their employees would all of a sudden have to go on the exchange, which is what of course the president promised wouldn't happen."

The Congressional Budget Office (CBO) premised their Obamacare score on the assumption that only 7 per cent of employers would drop their employee health plans. If the percentage is closer to the 30 per cent, as the McKinsey survey results predict, Obamacare’s price tag would rise by almost $1 trillion.

Source-Medindia