If you like your coverage, you can…well, actually, you’re out of luck. Because it turns out that it’s cheaper for companies to pay the $2,000 penalty for dropping coverage than it would be to continue covering the employees. Go figure.
Oh, and guess who agrees that ObamaCare will lead to major employers dropping coverage? Tennessee Governor Bredesen — a Democrat.
While it’s too early to proclaim the demise of job-based coverage, corporate number crunchers are looking at options that could lead to major changes.
“The economics of dropping existing coverage is about to become very attractive to many employers, both public and private,” said Gov. Phil Bredesen, D-Tenn.
That’s just not going to happen, White House officials say.
“The absolute certainty about the Affordable Care Act is that for many, many employers who cover millions of people, it increases the incentives for them to offer coverage,” said Jason Furman, an economic adviser to President Barack Obama.
Um…no. First of all, we’re already hearing about companies finding the prospect of dropping coverage to be attractive. And again, paying a $2,000 penalty looks pretty good compared to rising health care costs.
Barack Obama has repeatedly said that those who like their health care coverage can keep their health care coverage. That appears to have been one big lie.


by Stephan Tawney on October 25, 2010