Thursday, October 21, 2010

Phil Bredesen: Obamacare's incentive to drop insurance

Tennessee's Democratic Governor Phil Bredesen, a man who knows a thing or two about health care issue, today had an article published in the Wall Street Journal in which he explains why and how Obamacare provides incentives that will cause employers and local governments to stop providing health insurance coverage for their employees. This is an excellent article that explain what is wrong with Obamacare and the consequences of this legislation. Please follow this link to read the full article: ObamaCare's Incentive to Drop Insurance.

Below are excerpts from the article.

Our federal deficit is already at unsustainable levels, and most Americans understand that we can ill afford another entitlement program that adds substantially to it. But our recent health reform has created a situation where there are strong economic incentives for employers to drop health coverage altogether. The consequence will be to drive many more people than projected—and with them, much greater cost—into the reform's federally subsidized system. This will happen because the subsidies that become available to people purchasing insurance through exchanges are extraordinarily attractive.
The authors of health reform primarily targeted the uninsured and those now buying expensive individual policies. But there's a very large third group that can also enter and that may have been grossly underestimated: the 170 million Americans who currently have employer-sponsored group insurance. Because of the magnitude of the new subsidies created by Congress, the economics become compelling for many employers to simply drop coverage and help their employees obtain replacement coverage through an exchange.
The disaster that is Obamacare is a train wreck that is about to happen. It will bankrupt this nation and it must be repealed and Congress should pursue market-oriented and patient-centered reforms.

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