Insurance cancellations could reach 50 to 100 million next yearAnd the hits just keep on coming. CNN reports a new and independent analysis by American Enterprise Institute of ObamaCare predicts there could be as many as 50 million to 100 million insurance policy cancellations next fall as employer-sponsored insurance plans readjust to meet the requirements of the new health care law.
Until now we have only seen a relatively small fraction of the population affected by the Affordable Care Act, only those who were policyholders on the individual market. Next year we will see policies for employees of small businesses affected. Many of whom may be forced onto the ObamaCare exchanges.
"The impact I'm mostly worried about is on small young, entrepreneurial firms that will suddenly face much higher health insurance premiums if they want to offer health insurance to their employees," said AEI resident scholar Stan Veuger. "I think for a lot of other businesses ... they can just send their employees to the exchanges or offer them a fixed subsidy every month to buy health insurance themselves."
Healthcare law especially difficult for smaller employers
Its really a double-edged sword for small businesses. Many of them, who have less than 50 workers, will not be forced to provide health insurance to their employees. But what happens if they decide they want to? They will see their costs sky-rocket to meet the standards of Obamacare. This issue is not only keeping employers from hiring more workers or changing their status to part-time, but it is also a disincentive for employers to provide any type of insurance coverage, even if they have historically done so.
Fortunately, the full negative impact of the health care law has not been realized because the employer mandate was delayed and many businesses already renewed their policies this year. The relief will be short-lived, however. Businesses will eventually have to re-evaluate their plans and offer plans which meet the new requirements of the healthcare laws. This will occur as early as 2015.
President Obama backtracks on insurance cancellations
What is the White House doing? The backlash has been fierce from both sides of the aisle, and President Obama has been back tracking. He announced last week that insurance companies could offer out-of-compliance plans for another year. But this will do little to solve the problem.
So how big is the problem? No one knows for sure. But just from anecdotal evidence we know that many workers have already faced increased insurance costs and there are fewer full-time positions available. Just wait until the employer mandate hits and businesses realize the costs of offering insurance to employees is much more than paying the penalty.
Hospitals may not take health plans from exchanges
In another great turn of events, the Associated Press reports there are some hospitals which may not be participating in the new plans created by the Affordable Care Act. What will this mean for you? Once your employer stops offering insurance and you are forced onto the exchange, not only could you lose your ability to keep your doctor, but there may be hospitals that will also refuse to take your plan.