The IUSB Vision Weblog

The way to crush the middle class is to grind them between the millstones of taxation and inflation. – Vladimir Lenin

ObamaCare Will Increase Costs, Reduce Benefits, Towers Watson Surveys Find

Posted by iusbvision on March 19, 2010

Business Wire:

“Although the status of legislative health care reform is currently in limbo, it’s clear that employers and employees alike are concerned over the potential impact reform could have on health costs and their benefit programs,” said Ron Fontanetta, Towers Watson Health and Group Benefits practice leader for Intellectual Capital Development. “While health reform could ultimately provide greater access to health care to more Americans, there is a fair amount of skepticism over whether health reform will be able to curb rising health costs.”

Some will have greater ACCESS to health insurance, some people will get some of their insurance paid for by the government and the young and those with preexisting conditions will be able to buy insurance only when they get sick, and drop it when done with hospital and doctor visits, but what will that do to the budget deficits, health insurance premiums and medical costs? Businesses see it already.

The Towers Watson – National Business Group on Health survey found that nearly three-fourths (71%) of employers believe health reform will increase the overall cost of health care services in the United States, while 69% believe it will increase the cost of their benefit programs. Additionally, more than one-third (35%) say health reform will lead to fewer employers offering subsidized benefits. Nearly half (46%) of employers believe it will decrease employer-sponsored offering of retiree medical benefits, while very few — only 5% — say it will increase, and just 27% of employers say it will cause no change.

“These survey data confirm quantitatively what many people — employers, employees and policy pundits — have been talking about for the past four months. That is, whatever else a health care reform plan might do, it is unlikely to control health care costs, which has everyone worried,” said Helen Darling, President of the National Business Group on Health.

Than there will be the race to the bottom, employers providing plans with good care now will be able to lower that care and say “see we are meeting the government required minimum coverage….

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