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Blog: Health Insurance Premiums Rise Sharply and More Consequences of Obamacare Are Yet to Come

Statement

By:
Date:
Location: Washington, DC

Although many provisions of Obamacare do not take effect until 2014, we have already seen the reluctance of small businesses to hire additional employees based on the uncertainty the law has created. Results of recent studies show more consequences of the healthcare law including higher premiums and the likelihood that employers will stop offering health coverage altogether.

Today the Kaiser Family Foundation released itsannual Health Benefits Survey showing health care premiums in the workplace have increased by 9 percent -- over $1,200 for an average American family! (During his campaign, President Obama said he would reducehealth care premiums by $2,500.)

If a 9 percent increase in premiums was not bad enough, according to a study published in McKinsey Quarterly this summer, when some provisions of Obamacare take effect in 2014, three of every 10 employers will "definitely or probably" stop offering health coverage at all.

The study says that, "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."

Not only did this law, which gives the government more control over healthcare, affect the way healthcare providers and their patients interact, but it has a huge impact on the way businesses function. Instead of decisions regarding healthcare and business being made between doctors and patients and employers and employees, many of those decisions are heavily influenced (and in some cases mandated) by this ill-conceived law.

Instead of providing market driven, patient-centered solutions, the President and the previous Congress gave us more government intervention and control. As a result, many employers will likely find providing healthcare coverage to their employees under the new law too expensive and will likely stop offering health coverage.

Unfortunately only those chosen by the administration to receive Obamacare waivers are exempt -- everyone else will have to suffer the consequences of the provisions of the health care law. Especially in the current economy, we cannot afford these or any other additional obstacles to job creation and American families cannot afford these rising premium costs.


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