Survey reveals businesses will cut benefits and employees under Obamacare

President Obama and Democrats claim Obamacare will reduce costs. Most Americans are suspicious of cost reduction claims made by politicians. Mandatory coverage, coverage of preexisting conditions, mandated increased preventive care and other provisions will force the cost of health care insurance higher. What will businesses do if this happens? A new survey reveals they will reduce benefits, raise prices for customers and cut employees.

From Business Wire:

STAMFORD, Conn.--(BUSINESS WIRE)--With health care reform efforts ramping up after the summer break, many of the nation’s employers are focusing on the action in Congress and plan to adjust their benefit strategies based on how final legislation affects their costs, according to a survey of 433 HR and benefit executives from midsize and large organizations conducted by professional services firm Towers Perrin. Employers say they will not absorb any additional costs that result from reform and plan to take actions to avoid doing so, including reducing benefits, raising prices for customers and/or reducing head count.

Under a pay-or-play mandate, 29% would dump their employees into the public-option.

Among the full survey group, employers expect they would respond to a pay-or-play mandate in the following ways:

* 37% of employers would provide company-sponsored health coverage that substantially exceeds the standard.
* 29% of employers would discontinue company-sponsored health coverage and pay the assessment if the per-employee costs of payments to the federal government were substantially lower than their current costs.
* 26% of employers would provide company-sponsored health coverage at the level of the minimum standard required.