Medicare and Medicaid are the biggest element of our most serious national problem, crushing federal debt. Washington has evaded the debt crisis for the past two years. CBO recently projected that “spending on the major health care programs would grow form more than 5% of GDP today to almost 10% in 2037 and would continue to increase thereafter. Health care will consume more of the federal budget than all discretionary spending dose now-defense, law enforcement, courts, and all regulatory agencies. We will face the inescapable need to cut Medicare’s and Medicaid’s growth.
The employer mandate takes effect on 1/1/14. We can be certain that some employers who currently offer insurance will find they can save money by dropping it and paying the required penalty. (I SAID THIS WHEN THE BILL PASSED)
America’s largest private medical insurer, WellPoint is planning on it. There will be a transition from employer-based coverage to more consumer as purchasers.
If you think workers will be surprised when their coverage disappears, just wait until they discover they’ll be violating law if they don’t buy health insurance on their own. Employers no one can force them to spend their hard earned dollars on insurance if they don’t want to. The exchanges are schedule to open for enrollment on 10/1, but so far only 20 states are setting them up. The other states exchanges will have to be run by Washington and it still isn’t velar how they will work.
That’s because a business that fails to offer insurance to workers can avoid paying any penalties if it has fewer that 31 full time workers. All they have to do is replace full time workers with part-time ones.
From 17.9% of GDP in 2011, total health care spending will grow to 19.6% in 2021.
Health care, already the economy’s largest sector by far and proportionally much bigger than any other nation’s health care sector.
HANG ON, IT’S GOING TO GET INTERESTING!
Source—fortune, geoff colvin