Last year, a McKinsey survey found that 50% of employers with a “high awareness of (health) reform” would “definitely or probably” stop offering employer-sponsored insurance in 2014. A majority of those “dumped” employees who qualify for the exchange subsidy would probably find a better deal, but what impact will those people have on the deficit? The Congressional Budget Office modeled a scenario where employers dumped 14 million more people onto the exchanges and found it reduced the deficit by $13 billion from 2012-2022. How so? The generated tax revenue from people insured through exchanges who can no longer take advantage of the tax deduction for employer-sponsored health insurance. However, the CBO assumed that employers who dump health coverage would replace it with increased cash wages – dollar for dollar. It could mean much lower tax revenues if employers don’t decide to match.
These prospects have some gray hair, and some assets.
The typical enrollee had a monthly out-of-pocket cost of $47 or lower.
The review rules will apply when the U.S. insurer has sensitive information about 1 million or more people.
Sponsored by Cetera Financial Group
Do you know the difference between client experience and customer service? The answer is crucial.
Sponsored by T. Rowe Price Investment Services, Inc.
The “reflation trade” appears real, but risks are still elevated.
Don’t miss crucial news and insights you need to make informed investment advisory decisions. Join ThinkAdvisor.com now!
- Free unlimited access to ThinkAdvisor.com which provides advisors, like you, with comprehensive coverage of the products, services and trends necessary to guide your clients in making critical wealth, health and life decisions.
- Exclusive discounts on ALM and ThinkAdvisor events.
- Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.
Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.