A new study by McKinsey suggests that as many as 78 million Americans could lose employer health coverage.
By Grace-Marie Turner
ObamaCare will lead to a dramatic decline in employer-provided health insurance—with as many as 78 million Americans forced to find other sources of coverage.
This disturbing finding is based on my calculations from a survey by McKinsey & Company. The survey, published this week in the McKinsey Quarterly, found that up to 50% of employers say they will definitely or probably pursue alternatives to their current health-insurance plan in the years after the Patient Protection and Affordable Care Act takes effect in 2014. An estimated 156 million non-elderly Americans get their coverage at work, according to the Employee Benefit Research Institute.
Ai Insurance of North Carolina offers the best insurance rates on auto, home, life, commercial, and health insurance. http://www.aiins.us if you ou are looking for car insurance, health insurance, commercial insurance, life insurance, or boat insurance...they can help..offices in
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Before the health law passed, the Congressional Budget Office estimated that only nine million to 10 million people, or about 7% of employees who currently get health insurance at work, would switch to government-subsidized insurance. But the McKinsey survey of 1,300 employers across industries, geographies and employer sizes found "that reform will provoke a much greater response" and concludes that the health overhaul law will lead to a "radical restructuring" of job-based health coverage.
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Another McKinsey analyst, Alissa Meade, told a meeting of health-insurance executives last November that "something in the range of 80 million to 100 million individuals are going to change coverage categories in the two years" after the insurance mandates take effect in 2014.
Many employees who will need to seek another source of coverage will take advantage of the health-insurance subsidies for families making as much as $88,000 a year. This will drive up the cost of ObamaCare.
In a study last year, Douglas Holtz-Eakin, a former director of the Congressional Budget Office, estimated that an additional 35 million workers would be moved out of employer plans and into subsidized coverage, and that this would add about $1 trillion to the total cost of the president's health law over the next decade. McKinsey's survey implies that the cost to taxpayers could be significantly more.
The McKinsey study, "How US health care reform will affect employee benefits," predicts that employers will either drop coverage altogether, offer defined contributions for insurance, or offer coverage only to certain employees. The study concludes that 30% of employers overall will definitely or probably stop offering health insurance to their workers. However, among employers with a high awareness of the health-reform law, this proportion increases to more than 50%.
The employer incentives to alter or cease coverage under the health-reform law are strong. According to the study, at least 30% of employers would gain economically from dropping coverage, even if they completely compensated employees for the change through other benefit offerings or higher salaries. That's because they no longer would be tethered to health-insurance costs that consistently rise faster than inflation.
Employers should think twice if they believe the fine for not offering coverage will stay unchanged at $2,000 per worker. "If many companies drop health insurance coverage, the government could increase the employer penalty or raise taxes," according to the new study, authored by McKinsey consultants Shubham Singhal, Jeris Stueland and Drew Ungerman.
The case for repeal of ObamaCare grows stronger every year. The massive shift of health costs to taxpayers thanks to the disruption of employer-sponsored health insurance will add further to the burgeoning federal budget deficit. Congress can and must develop policies that allow the marketplace to evolve and not be forced into ObamaCare's regulatory straitjacket.
Ms. Turner is president of the Galen Institute and a co-author of "Why ObamaCare Is Wrong for America" (Broadside/HarperCollins, 2011).
*Ai Insurance does not endorse the content provided within this blog. Content is strictly for informational purposes only.
Tuesday, June 7, 2011
Critics: Insurance Companies Benefit from NC Tort Reform Bill
RALEIGH, N.C. - Cutting costs for insurance companies is the end result of a bill that passed the North Carolina House last week, according to those who oppose the legislation. They say it would be at the expense of the public, since in the event of an auto accident or similar circumstance, the extent to which a person in North Carolina can hold someone else accountable for injuries could soon be limited..
If House Bill 542 becomes law, people hurt by the actions of others will be required to reveal the amount of insurance they have while, at the same time, defendants would be able to keep their insurance coverage secret.
Raleigh attorney Chris Nichols doesn't think that's fair when, for example, someone is injured by a drunk driver.
"The North Carolina GOP wants to change the law and allow an irresponsible driver to take advantage of the benefits that responsible people have worked for and paid for."
Contact Ai Insurance for all of your insurance needs. Auto, Home, Life, Health, Commercial...they can help. Save up to 50% on your current insurance! Compare your current plan with Ai Insurance rates. Offices in Fayetteville, Wilmington, Rocky Mount, Greenville, and Wilson. http://www.aiins.us
HB 542 passed the House last week and is now in the Senate Judiciary Committee. If voted out of committee, it will go to the Senate floor by June 17.
Nichols believes state lawmakers are bowing to the pressures of insurance company lobbyists.
"North Carolina has always favored the people; we're a populist state. And, if the governor signs this bill, she is reversing that trend. We become a state that caters to corporate interests only."
Those in favor of this provision and others in the bill insist they are a necessary part of tort reform for the state, to rein in the costs of legal action.
Stephanie Carroll Carson, Public News Service - NC
If House Bill 542 becomes law, people hurt by the actions of others will be required to reveal the amount of insurance they have while, at the same time, defendants would be able to keep their insurance coverage secret.
Raleigh attorney Chris Nichols doesn't think that's fair when, for example, someone is injured by a drunk driver.
"The North Carolina GOP wants to change the law and allow an irresponsible driver to take advantage of the benefits that responsible people have worked for and paid for."
Contact Ai Insurance for all of your insurance needs. Auto, Home, Life, Health, Commercial...they can help. Save up to 50% on your current insurance! Compare your current plan with Ai Insurance rates. Offices in Fayetteville, Wilmington, Rocky Mount, Greenville, and Wilson. http://www.aiins.us
HB 542 passed the House last week and is now in the Senate Judiciary Committee. If voted out of committee, it will go to the Senate floor by June 17.
Nichols believes state lawmakers are bowing to the pressures of insurance company lobbyists.
"North Carolina has always favored the people; we're a populist state. And, if the governor signs this bill, she is reversing that trend. We become a state that caters to corporate interests only."
Those in favor of this provision and others in the bill insist they are a necessary part of tort reform for the state, to rein in the costs of legal action.
Stephanie Carroll Carson, Public News Service - NC
Critics: Insurance Companies Benefit from NC Tort Reform Bill
RALEIGH, N.C. - Cutting costs for insurance companies is the end result of a bill that passed the North Carolina House last week, according to those who oppose the legislation. They say it would be at the expense of the public, since in the event of an auto accident or similar circumstance, the extent to which a person in North Carolina can hold someone else accountable for injuries could soon be limited..
If House Bill 542 becomes law, people hurt by the actions of others will be required to reveal the amount of insurance they have while, at the same time, defendants would be able to keep their insurance coverage secret.
Raleigh attorney Chris Nichols doesn't think that's fair when, for example, someone is injured by a drunk driver.
"The North Carolina GOP wants to change the law and allow an irresponsible driver to take advantage of the benefits that responsible people have worked for and paid for."
Contact Ai Insurance for all of your insurance needs. Auto, Home, Life, Health, Commercial...they can help. Save up to 50% on your current insurance! Compare your current plan with Ai Insurance rates. Offices in Fayetteville, Wilmington, Rocky Mount, Greenville, and Wilson. http://www.aiins.us
HB 542 passed the House last week and is now in the Senate Judiciary Committee. If voted out of committee, it will go to the Senate floor by June 17.
Nichols believes state lawmakers are bowing to the pressures of insurance company lobbyists.
"North Carolina has always favored the people; we're a populist state. And, if the governor signs this bill, she is reversing that trend. We become a state that caters to corporate interests only."
Those in favor of this provision and others in the bill insist they are a necessary part of tort reform for the state, to rein in the costs of legal action.
Stephanie Carroll Carson, Public News Service - NC
If House Bill 542 becomes law, people hurt by the actions of others will be required to reveal the amount of insurance they have while, at the same time, defendants would be able to keep their insurance coverage secret.
Raleigh attorney Chris Nichols doesn't think that's fair when, for example, someone is injured by a drunk driver.
"The North Carolina GOP wants to change the law and allow an irresponsible driver to take advantage of the benefits that responsible people have worked for and paid for."
Contact Ai Insurance for all of your insurance needs. Auto, Home, Life, Health, Commercial...they can help. Save up to 50% on your current insurance! Compare your current plan with Ai Insurance rates. Offices in Fayetteville, Wilmington, Rocky Mount, Greenville, and Wilson. http://www.aiins.us
HB 542 passed the House last week and is now in the Senate Judiciary Committee. If voted out of committee, it will go to the Senate floor by June 17.
Nichols believes state lawmakers are bowing to the pressures of insurance company lobbyists.
"North Carolina has always favored the people; we're a populist state. And, if the governor signs this bill, she is reversing that trend. We become a state that caters to corporate interests only."
Those in favor of this provision and others in the bill insist they are a necessary part of tort reform for the state, to rein in the costs of legal action.
Stephanie Carroll Carson, Public News Service - NC
Critics: Insurance Companies Benefit from NC Tort Reform Bill
RALEIGH, N.C. - Cutting costs for insurance companies is the end result of a bill that passed the North Carolina House last week, according to those who oppose the legislation. They say it would be at the expense of the public, since in the event of an auto accident or similar circumstance, the extent to which a person in North Carolina can hold someone else accountable for injuries could soon be limited..
If House Bill 542 becomes law, people hurt by the actions of others will be required to reveal the amount of insurance they have while, at the same time, defendants would be able to keep their insurance coverage secret.
Raleigh attorney Chris Nichols doesn't think that's fair when, for example, someone is injured by a drunk driver.
"The North Carolina GOP wants to change the law and allow an irresponsible driver to take advantage of the benefits that responsible people have worked for and paid for."
Contact Ai Insurance for all of your insurance needs. Auto, Home, Life, Health, Commercial...they can help. Save up to 50% on your current insurance! Compare your current plan with Ai Insurance rates. Offices in Fayetteville, Wilmington, Rocky Mount, Greenville, and Wilson. http://www.aiins.us
HB 542 passed the House last week and is now in the Senate Judiciary Committee. If voted out of committee, it will go to the Senate floor by June 17.
Nichols believes state lawmakers are bowing to the pressures of insurance company lobbyists.
"North Carolina has always favored the people; we're a populist state. And, if the governor signs this bill, she is reversing that trend. We become a state that caters to corporate interests only."
Those in favor of this provision and others in the bill insist they are a necessary part of tort reform for the state, to rein in the costs of legal action.
Stephanie Carroll Carson, Public News Service - NC
If House Bill 542 becomes law, people hurt by the actions of others will be required to reveal the amount of insurance they have while, at the same time, defendants would be able to keep their insurance coverage secret.
Raleigh attorney Chris Nichols doesn't think that's fair when, for example, someone is injured by a drunk driver.
"The North Carolina GOP wants to change the law and allow an irresponsible driver to take advantage of the benefits that responsible people have worked for and paid for."
Contact Ai Insurance for all of your insurance needs. Auto, Home, Life, Health, Commercial...they can help. Save up to 50% on your current insurance! Compare your current plan with Ai Insurance rates. Offices in Fayetteville, Wilmington, Rocky Mount, Greenville, and Wilson. http://www.aiins.us
HB 542 passed the House last week and is now in the Senate Judiciary Committee. If voted out of committee, it will go to the Senate floor by June 17.
Nichols believes state lawmakers are bowing to the pressures of insurance company lobbyists.
"North Carolina has always favored the people; we're a populist state. And, if the governor signs this bill, she is reversing that trend. We become a state that caters to corporate interests only."
Those in favor of this provision and others in the bill insist they are a necessary part of tort reform for the state, to rein in the costs of legal action.
Stephanie Carroll Carson, Public News Service - NC
Critics: Insurance Companies Benefit from NC Tort Reform Bill
RALEIGH, N.C. - Cutting costs for insurance companies is the end result of a bill that passed the North Carolina House last week, according to those who oppose the legislation. They say it would be at the expense of the public, since in the event of an auto accident or similar circumstance, the extent to which a person in North Carolina can hold someone else accountable for injuries could soon be limited..
If House Bill 542 becomes law, people hurt by the actions of others will be required to reveal the amount of insurance they have while, at the same time, defendants would be able to keep their insurance coverage secret.
Raleigh attorney Chris Nichols doesn't think that's fair when, for example, someone is injured by a drunk driver.
"The North Carolina GOP wants to change the law and allow an irresponsible driver to take advantage of the benefits that responsible people have worked for and paid for."
Contact Ai Insurance for all of your insurance needs. Auto, Home, Life, Health, Commercial...they can help. Save up to 50% on your current insurance! Compare your current plan with Ai Insurance rates. Offices in Fayetteville, Wilmington, Rocky Mount, Greenville, and Wilson. http://www.aiins.us
HB 542 passed the House last week and is now in the Senate Judiciary Committee. If voted out of committee, it will go to the Senate floor by June 17.
Nichols believes state lawmakers are bowing to the pressures of insurance company lobbyists.
"North Carolina has always favored the people; we're a populist state. And, if the governor signs this bill, she is reversing that trend. We become a state that caters to corporate interests only."
Those in favor of this provision and others in the bill insist they are a necessary part of tort reform for the state, to rein in the costs of legal action.
Stephanie Carroll Carson, Public News Service - NC
If House Bill 542 becomes law, people hurt by the actions of others will be required to reveal the amount of insurance they have while, at the same time, defendants would be able to keep their insurance coverage secret.
Raleigh attorney Chris Nichols doesn't think that's fair when, for example, someone is injured by a drunk driver.
"The North Carolina GOP wants to change the law and allow an irresponsible driver to take advantage of the benefits that responsible people have worked for and paid for."
Contact Ai Insurance for all of your insurance needs. Auto, Home, Life, Health, Commercial...they can help. Save up to 50% on your current insurance! Compare your current plan with Ai Insurance rates. Offices in Fayetteville, Wilmington, Rocky Mount, Greenville, and Wilson. http://www.aiins.us
HB 542 passed the House last week and is now in the Senate Judiciary Committee. If voted out of committee, it will go to the Senate floor by June 17.
Nichols believes state lawmakers are bowing to the pressures of insurance company lobbyists.
"North Carolina has always favored the people; we're a populist state. And, if the governor signs this bill, she is reversing that trend. We become a state that caters to corporate interests only."
Those in favor of this provision and others in the bill insist they are a necessary part of tort reform for the state, to rein in the costs of legal action.
Stephanie Carroll Carson, Public News Service - NC
Critics: Insurance Companies Benefit from NC Tort Reform Bill
RALEIGH, N.C. - Cutting costs for insurance companies is the end result of a bill that passed the North Carolina House last week, according to those who oppose the legislation. They say it would be at the expense of the public, since in the event of an auto accident or similar circumstance, the extent to which a person in North Carolina can hold someone else accountable for injuries could soon be limited..
If House Bill 542 becomes law, people hurt by the actions of others will be required to reveal the amount of insurance they have while, at the same time, defendants would be able to keep their insurance coverage secret.
Raleigh attorney Chris Nichols doesn't think that's fair when, for example, someone is injured by a drunk driver.
"The North Carolina GOP wants to change the law and allow an irresponsible driver to take advantage of the benefits that responsible people have worked for and paid for."
Contact Ai Insurance for all of your insurance needs. Auto, Home, Life, Health, Commercial...they can help. Save up to 50% on your current insurance! Compare your current plan with Ai Insurance rates. Offices in Fayetteville, Wilmington, Rocky Mount, Greenville, and Wilson. http://www.aiins.us
HB 542 passed the House last week and is now in the Senate Judiciary Committee. If voted out of committee, it will go to the Senate floor by June 17.
Nichols believes state lawmakers are bowing to the pressures of insurance company lobbyists.
"North Carolina has always favored the people; we're a populist state. And, if the governor signs this bill, she is reversing that trend. We become a state that caters to corporate interests only."
Those in favor of this provision and others in the bill insist they are a necessary part of tort reform for the state, to rein in the costs of legal action.
Stephanie Carroll Carson, Public News Service - NC
If House Bill 542 becomes law, people hurt by the actions of others will be required to reveal the amount of insurance they have while, at the same time, defendants would be able to keep their insurance coverage secret.
Raleigh attorney Chris Nichols doesn't think that's fair when, for example, someone is injured by a drunk driver.
"The North Carolina GOP wants to change the law and allow an irresponsible driver to take advantage of the benefits that responsible people have worked for and paid for."
Contact Ai Insurance for all of your insurance needs. Auto, Home, Life, Health, Commercial...they can help. Save up to 50% on your current insurance! Compare your current plan with Ai Insurance rates. Offices in Fayetteville, Wilmington, Rocky Mount, Greenville, and Wilson. http://www.aiins.us
HB 542 passed the House last week and is now in the Senate Judiciary Committee. If voted out of committee, it will go to the Senate floor by June 17.
Nichols believes state lawmakers are bowing to the pressures of insurance company lobbyists.
"North Carolina has always favored the people; we're a populist state. And, if the governor signs this bill, she is reversing that trend. We become a state that caters to corporate interests only."
Those in favor of this provision and others in the bill insist they are a necessary part of tort reform for the state, to rein in the costs of legal action.
Stephanie Carroll Carson, Public News Service - NC
Critics: Insurance Companies Benefit from NC Tort Reform Bill
RALEIGH, N.C. - Cutting costs for insurance companies is the end result of a bill that passed the North Carolina House last week, according to those who oppose the legislation. They say it would be at the expense of the public, since in the event of an auto accident or similar circumstance, the extent to which a person in North Carolina can hold someone else accountable for injuries could soon be limited..
If House Bill 542 becomes law, people hurt by the actions of others will be required to reveal the amount of insurance they have while, at the same time, defendants would be able to keep their insurance coverage secret.
Raleigh attorney Chris Nichols doesn't think that's fair when, for example, someone is injured by a drunk driver.
"The North Carolina GOP wants to change the law and allow an irresponsible driver to take advantage of the benefits that responsible people have worked for and paid for."
Contact Ai Insurance for all of your insurance needs. Auto, Home, Life, Health, Commercial...they can help. Save up to 50% on your current insurance! Compare your current plan with Ai Insurance rates. Offices in Fayetteville, Wilmington, Rocky Mount, Greenville, and Wilson. http://www.aiins.us
HB 542 passed the House last week and is now in the Senate Judiciary Committee. If voted out of committee, it will go to the Senate floor by June 17.
Nichols believes state lawmakers are bowing to the pressures of insurance company lobbyists.
"North Carolina has always favored the people; we're a populist state. And, if the governor signs this bill, she is reversing that trend. We become a state that caters to corporate interests only."
Those in favor of this provision and others in the bill insist they are a necessary part of tort reform for the state, to rein in the costs of legal action.
Stephanie Carroll Carson, Public News Service - NC
If House Bill 542 becomes law, people hurt by the actions of others will be required to reveal the amount of insurance they have while, at the same time, defendants would be able to keep their insurance coverage secret.
Raleigh attorney Chris Nichols doesn't think that's fair when, for example, someone is injured by a drunk driver.
"The North Carolina GOP wants to change the law and allow an irresponsible driver to take advantage of the benefits that responsible people have worked for and paid for."
Contact Ai Insurance for all of your insurance needs. Auto, Home, Life, Health, Commercial...they can help. Save up to 50% on your current insurance! Compare your current plan with Ai Insurance rates. Offices in Fayetteville, Wilmington, Rocky Mount, Greenville, and Wilson. http://www.aiins.us
HB 542 passed the House last week and is now in the Senate Judiciary Committee. If voted out of committee, it will go to the Senate floor by June 17.
Nichols believes state lawmakers are bowing to the pressures of insurance company lobbyists.
"North Carolina has always favored the people; we're a populist state. And, if the governor signs this bill, she is reversing that trend. We become a state that caters to corporate interests only."
Those in favor of this provision and others in the bill insist they are a necessary part of tort reform for the state, to rein in the costs of legal action.
Stephanie Carroll Carson, Public News Service - NC
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