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Tags: Obamacare | healthcare | S&P 500 | savings

Report: Obamacare to Save Large Companies $700 Billion

Thursday, 01 May 2014 09:35 AM EDT

The largest U.S. companies are likely to save hundreds of billions of dollars under Obamacare, according to new research.

The Hill reported that the S&P Capital IQ found that S&P 500 companies are expected to move some of their employees from employer-provided health insurance plans to the federal and state healthcare exchanges under the Affordable Care Act.

The research showed that the shift would save major corporations nearly $700 billion through the year 2025, and could be more than $800 billion at current healthcare inflation rates.

"Neither lawmakers nor the White House originally anticipated the idea that the ACA could provide corporations with an enormous subsidy to earnings," says the review.

"However, once a few notable companies start to depart from their traditional approach to healthcare benefits, it's likely that a substantial number of firms could quickly follow suit."

Large companies are likely to remove low-wage and part-time workers from their employer insurance plans because those employees will be able to enjoy the benefits of government tax subsidies and cheaper health plans under Obamacare.

In the long run, the cost of healthcare coverage will be transferred from employers to employees, says The Hill.

The report also suggests that as more people enroll in Obamacare, the cost of coverage would probably decrease while access to medical benefits would increase. But it also warned that premium costs could rise for people who don’t qualify for government subsidies.

"At the moment, any drastic changes to employer-provided health care benefits would likely be frowned upon by employees and the voting public at large," the report cautioned.

"Neither lawmakers nor the White House originally anticipated the idea that the ACA could provide corporations with an enormous subsidy to earnings."

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The largest U.S. companies are likely to save hundreds of billions of dollars under Obamacare, according to new research.
Obamacare, healthcare, S&P 500, savings
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2014-35-01
Thursday, 01 May 2014 09:35 AM
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