Report: ObamaCare to save large corporations hundreds of billions [View all]
By Ferdous Al-Faruque -
The Affordable Care Act could save some of America’s largest corporations hundreds of billions of dollars over the next decade, according to a market analyst group.
According to a report by S&P Capital IQ released Thursday, S&P 500 companies will likely move their employees from employer-provided health insurance plans to the healthcare exchanges under the Affordable Care Act, saving employers nearly $700 billion through the year 2025. If current healthcare inflation stays constant, those savings could be greater than $800 billion, researchers found.
Corporations are expected to start out by dropping low-wage and part-time workers from their employer insurance plans since they are able to reap the benefits of government tax subsidies under Obamacare, leading them to pick up new plans under the healthcare law. Eventually, the burden of healthcare coverage will shift from employers to employees.
“Neither lawmakers nor the White House originally anticipated the idea that the ACA could provide corporations with an enormous subsidy to earnings,” say authors of the report. “However, once a few notable companies start to depart from their traditional approach to health care benefits, it's likely that a substantial number of firms could quickly follow suit.”
Read more: http://thehill.com/policy/healthcare/204893-report-o-care-to-save-large-firms-hundreds-of-billions
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