Side Effects: Obamacare Creates a Costly Drop in Employer Health Coverage

Kathryn Nix / June 02, 2010

The President repeatedly promised that if you liked your health plan, you would be able to keep it. Nothing would change. Fat chance.

In fact, millions of Americans of Americans will lose or be transitioned out of their existing employer based health insurance. The official Actuary at HHS- who doesn’t speak for the Administration- said it would be 14 million. But a new report by former Director of the Congressional Budget Office Douglas Holtz-Eakin predicts it could be as high as 35 million. That kind of disruption comes at a high price:  It’ll cost taxpayers nearly $1 trillion more than previously estimated.

Why? Because Obamacare calls for lavish subsidies to help low- and middle-income Americans buy health insurance.  Indeed, households earning up to four times the federal poverty level are eligible for subsidies.  According to 2008 Census data, some 127 million Americans would qualify.  Yet the official CBO analysis of Obamacare estimated only 19 million would get subsidies. (more…)