Study Finds Health Care Reform Could Have Dire Effect on Employer Based Coverage

Small businesses are lining up with their hands tied behind their backs as Democrat’s health care reforms prepare to pull a plethora of triggers aimed at their wallets. But who is really in the crosshairs? The employees. The problem with targeting businesses is that they are a moving target – shifting and defraying costs to either their employees or consumers. In the end we’re all losers.

A new study by Towers Watson, a corporate consulting company, found that:

“Employers have little hope that the Patient Protection and Affordable Care Act (PPACA) will help them achieve their top goals to decrease health care cost trend and improve workforce health. Indeed, most employers are convinced that health care reform will lead to increased costs and a stepped-up exodus from employer-provided retiree medical coverage”

Even worse for employees, the study found that:

  • 94% of companies believe that Democrats’ health care reform will raise costs
  • 88% say they plan to pass that increase on to their employees
  • 74% plan to reduce health benefits and programs rather than eat the costs
  • 43% of those businesses that offer retiree benefits expect to reduce or eliminate them

Given all we are finding out I look to like back on liberal columnist Paul Krugman’s prediction that,

Health care reform will have broad public support once it’s in place and the scare stories are proved false. The new health care system will be criticized; people will demand changes and improvements; but only a small minority will want reform reversed.

In fact the “scare stories” are worse than we ever imagined. The same survey shows that approximately 25% of companies say that rather than cutting benefits they simply will not continue providing subsidized coverage. As Ed Morrissey of Hot Air explains, if that trend holds true nationwide, 40 million people could lose their company health insurance. Another of President Obama’s promises, that “if you like your insurance plan, you can keep it,” bites the dust.

Krugman was also wrong that “only a small minority” will want reform reversed. In reality, a majority of Americans are urging for repeal in light of the ugly realities of the health care reform law. How could they not given the string of broken promises that now litter the road from passage to implementation? We know that health care reform will not reduce the deficit, it will actually make care more expensive, it creates additional burdens on small businesses, and now we find out that it may disrupt the long-term stability of employer provided insurance.

Since taking office President Obama has had his sights on health care reform. His party bit the bullet to get it done. It’s now blowing up in all of our faces.

by Brandon Greife, Political Director of the College Republican National Committee