A new study shows that nearly one of every 10 large and midsized companies plans to stop offering health insurance to their employees by 2014. The survey of 368 companies by Towers Watson, a human resources consulting firm, shows that as many as 9 percent plan to drop their employer-sponsored health insurance coverage in this timeframe.
In 2014 the Obama-sponsored Patient Protection and Affordable Care Act (PPACA) will mandate individuals and families to obtain insurance or pay a penalty. Those unable to obtain insurance from their employer or through government programs will be forced to purchase private coverage from private insurers on an “exchange.”
A study by the McKinsey Company in June showed that an even larger number, 30 percent, were likely to drop coverage for their workers after many of the provisions of the health care bill take effect in 2014. (See “More US employers to drop coverage under Obama health care overhaul”)
The new study is the latest demonstration that the health care overhaul will result in a deterioration of health care provision for the majority of Americans, rather than the vast improvement touted by the Obama administration.