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New Study: 30 Percent of Employers Would Dump Employees into Obamacare Exchanges at Taxpayer Expense


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Weekly Standard:

A new study by McKinsey & Company finds that, under Obamacare, the exodus of employers from the employer provided insurance market would be “vastly greater than expected.” The report on the study states:

“Our research suggests that when employers become more aware of the new economic and social incentives embedded in the law…many will make dramatic changes. The Congressional Budget Office has estimated that only about 7 percent of employees currently covered by employer-sponsored insurance (ESI) will have to switch to subsidized-exchange policies in 2014. However, our early-2011 survey of more than 1,300 employers across industries, geographies, and employer sizes, as well as other proprietary research, found that [the overhaul] will provoke a much greater response.”

The study finds that, “Overall, 30 percent of employers will definitely or probably stop offering ESI in the years after 2014….Among employers with a high awareness of reform, this proportion increases to more than 50 percent.” snip
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