Morning Bell: Americans Will Suffer Under New Obamacare Mandates

Ericka Andersen / June 09, 2011

It’s easy to see why Obamacare’s unpopularity grows substantially with every new detail that comes out. As former House Speaker Nancy Pelosi (D–CA) infamously noted, we had to pass the bill to find out what was in it. Well, now we know.

Many businesses affected by Obamacare—those not lucky enough to receive the coveted waivers—now view their slimming insurance options with extreme caution.

A shocking new study out by McKinsey and Company finds that 30–50 percent of employers who currently provide health insurance for their employees are likely to drop their coverage. Yes, that’s right. Even if you like your insurance, you will not be able to keep it, as President Obama often and famously promised.

Obamacare offers subsidies to low- and middle-income workers who don’t have employer coverage while fining employers that do not offer coverage. But for employers, paying the fines will be a lot less expensive than continuing to offer coverage. As the McKinsey report correctly notes, that will still be true even if employers also pass the remaining savings (after paying the fines) onto their workers in the form of higher cash wages or other benefits such as extra vacation days or increased retirement plan contributions. (more…)