That’s evade, not drop, though they’ll probably drop too
I wrote that last post when I was in a hurry to get out the door and pick up my kid. I said employers will “drop” coverage when Obamacare takes effect. I should have said they’ll evade the mandate by paying the penalty rather than the insurance premium. Most victims of this evasion don’t have health insurance now, so “drop” is clearly the wrong word for the set of workers that the FT article reported on. But the original McKinsey survey was about employers who now offer health insurance who are likely to drop coverage… Read More
Yeah, lots of employers are going to evade health coverage
Back in the summer of 2011, McKinsey released results of a survey they’d done of employers showing that many would not offer health insurance coverage when Obamacare* takes full effect. The liberal establishment united in loud criticism of the consulting firm’s report—but it’s looking like they were right. I wrote up the original report (“Bye-bye employer health insurance”) and experienced some of the loud criticisms, prompting a follow-up (“McKinsey: more right than wrong”) based on reading the full survey, something that some of the critics, including apparently Paul Krugman, hadn’t done. Ah,… Read More
LBO News from Doug Henwood 