Mercer Study Highlights Obamacare’s Failure to Contain Costs
Last week, consultants at Mercer released their annual survey of employer sponsored coverage, and the results were far from encouraging. Once again health spending levels have risen unabated, putting additional strain on struggling American businesses and families:
Higher Premiums: The total cost of plans rose by 6.1% in 2011, and is expected to rise by another 5.7% in 2012.
Higher Cost-Sharing: Nearly half (47%) of all employers plan on raising deductibles or the percentage of premiums paid by employees as a response to the continued escalation in health care costs.
Higher Taxes: Nearly half (48%) of all employers say they are significantly concerned about the 40 percent tax on health benefits scheduled to take effect under Obamacare.
Dropped Coverage: One third of firms had already lost the health insurance coverage they had before Obamacare. And nearly one in five (19%) firms with 10-499 employees say they are “very likely” or “likely” to drop coverage beginning in 2014, when Obamacare’s subsidy regime takes effect.
Candidate Obama repeatedly promised that he would cut premium costs by an average of $2,500 per family, and do so in his first term. The Mercer study once again illustrates how Obamacare is failing to live up to its promises.