Friday, August 9, 2013

Another Unintended Consequence Of ObamaCare

The more I learn about O'BamaCare, the less worried I am as an investor. This will all take care of itself. Already, the plan has been delayed a year for big corporations, and the individual mandate isn't even going to be enforced until 2015.

Now this.

The Weekly Standard is reporting:
The Associated Press reported yesterday that insurance companies "have already warned small business customers that premiums could rise 20 percent or more in 2014 under the Affordable Care Act," and some companies may respond by not paying for insurance coverage for their employees' family members.
I completely missed that one.

Small businesses may actually come out ahead on O'BamaCare by insuring the employee only, and not the employee's family. A healthy male, age 25 - 50, can probably be insured for about $500 a month, whereas a family can run as much as $2,000/month. Coverage for a healthy female, with no pregnancy coverage, could run about the same but with obstetrical coverage the rate would be significantly higher under the current system. Under O'BamaCare it's hard to say how it will play out.
But for small businesses having the employees' families covered by the O'BamaCare exchanges rather than by the business health program makes all kinds of sense. And with unemployment/employment being what it is, it is unlikely many employees will be able to vote with their feet.

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