HHS Official Acknowledges Incentives for Employers to Dump Coverage Under Obamacare

Kathryn Nix / March 30, 2011

One major concern of Obamacare is its huge incentive for businesses to dump employer-sponsored coverage. Recently, the Obama Administration acknowledged that this is likely, though it did so in an attempt to portray it as a positive outcome of its signature legislation. In reality, Americans will experience severe consequences if this effect of the new law comes to fruition.

Under Obamacare, those without government-qualified employer-sponsored insurance will be able to purchase insurance in the new exchanges. The new law creates generous subsidies to make coverage more affordable for low- and middle-income Americans. To qualify for a subsidy, an individual or family must fall between 138 and 400 percent of the federal poverty level. (more…)