Katie Pavlich

Obama and his far Left-wing base are on their way to getting exactly what they wanted, a single payer healthcare system as businesses will drop healthcare coverage for employees as soon as ObamaCare is fully implemented.  A new study conducted by McKinsey Quarterly shows that nearly 1 in 3 businesses will be dropping coverage because insuring employess under the new system will no longer be affordable. Heritage has more.

According to their findings, 30 percent of employers said they would definitely or probably stop offering insurance once the law’s main provisions go into effect in 2014. The inclination to dump coverage exceeded 50 percent once employers’ understanding of the law’s effects increased.

Obamacare encourages employers to dump coverage on two fronts. First, several provisions will increase the cost of employer-sponsored insurance (ESI), including new insurance requirements and mandates, and a tax on high-cost health plans. Employers who don’t offer a minimum level of coverage deemed essential by the federal government will face a penalty of $2,000 per worker, but as the authors point out, Obamacare’s other “requirements will increase medical costs for many companies. It’s important to note that the penalty for not offering coverage is set significantly below these costs.”

Conservatives have been saying this would happen since the beginning of the healthcare debate. We warned you.


Katie Pavlich

Katie Pavlich is the News Editor at Townhall.com. Follow her on Twitter @katiepavlich. She is a New York Times Best Selling author. Her new book Assault and Flattery: The Truth About the Left and Their War on Women, will be published on July 8, 2014.

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Author Photo credit: Jensen Sutta Photography