WorldFinanceOnline.com » Price http://www.worldfinanceonline.com www.worldfinanceonline.com Sat, 04 Feb 2012 09:43:34 +0000 en hourly 1 http://wordpress.org/?v=3.3 Obamacare, Gov't Insurance Exchanges, & The Coming Price Explosion http://www.worldfinanceonline.com/2011/11/obamacare-govt-insurance-exchanges-the-coming-price-explosion/ http://www.worldfinanceonline.com/2011/11/obamacare-govt-insurance-exchanges-the-coming-price-explosion/#comments Mon, 21 Nov 2011 09:44:08 +0000 World Finance Online http://www.worldfinanceonline.com/2011/11/obamacare-govt-insurance-exchanges-the-coming-price-explosion/ a

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One of the features of the Patient Protection and Affordable Care Act, the health-care reform bill colloquially known as Obamacare, is the creation of insurance exchanges that will offer heavily subsidized policies and coverage for people who cannot get insurance through their employers. In projecting the program's costs, the Congressional Budget Office figures that about 7 percent of the workforce currently covered by employer-provided insurance will drop those policies and sign up for the subsidized insurance. That estimate – and hence, the cost structure of the program – has been challenged by sources such as McKinsey & Company, the consulting firm, which reckons a far higher percentage of workers will opt out of their current job-based plans. In a survey of employers released in June, McKinsey found that 30 percent will "definitely or probably" drop their coverage as Obamacare kicks into high gear in 2014. Among "employers with a high awareness of reform, this proportion rises to more than 50 percent," says the report. Why? It will be cheaper to pay fines than to provide coverage. If those estimates are accurate, the cost savings ObamaCare supporters tout are a pipe dream. Glenn Morton, the author of the new book Passing Obamacare, has worked for nearly two decades in the health-insurance business, most recently as a broker who helps employers find better deals among providers. In a discussion with Reason's Nick Gillespie, Morton adds another problem with recently …

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