Friday, May 21, 2010

How Obamacare will cause employers to dump health insurance

This article in the WSJ provides an interesting analysis of the financial incentives under the new law for employers to dump coverage, which is just what Obama had in mind to convert to government run healthcare.

A sample:

"AT&T, for example, paid $2.4 billion last year to cover medical costs for its 283,000 active employees. If the company dropped its health plan and paid an annual penalty for each uninsured worker, the fines would total almost $600 million. But that would leave AT&T with a tidy profit of $1.8 billion."

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