McKinsey: 78 million Americans could lose employer health coverage … thanks, ObamaCare.

 Punch line: ObamaCare will lead to a dramatic decline in employer-provided health insurance—with as many as 78 million Americans forced to find other sources of coverage.

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Currently,  156 million non-elderly Americans get their coverage at work.

Before ObamaCare passed, the CBO estimated that only 9 million to 10 million people, or about 7% of employees who currently get health insurance at work, would switch to government-subsidized insurance.

A new study by McKinsey – reported in the WSJ — suggests that ObamaCare will lead to a “radical restructuring” of job-based health coverage with  as many as 78 million Americans could lose employer health coverage.

The McKinsey study, “How US health care reform will affect employee benefits,” predicts that employers will either drop coverage altogether, offer defined contributions for insurance, or offer coverage only to certain employees.

Up to 50% of employers say they will definitely or probably pursue alternatives to their current health-insurance plan when ObamaCare takes effect in 2014.

And, “something in the range of 80 million to 100 million individuals are going to change coverage categories in the two years” after the insurance mandates take effect in 2014.

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One Response to “McKinsey: 78 million Americans could lose employer health coverage … thanks, ObamaCare.”

  1. IAG Says:

    Not one of McKinsey’s finest moments with this “study”. Massachusetts has seen nothing like this.

    But multiple sources both within and outside the firm tell TPM the survey was not conducted using McKinsey’s typical, meticulous methodology. Indeed, the article the firm published was not intended to give the subject matter the same authoritative treatment as more thorough studies on the same topic — particularly those conducted by numerous think tanks, and the Congressional Budget Office, which came to the opposite conclusion. And that’s created a clamor within the firm at high levels to set the record straight.

    “This particular survey wasn’t designed in away that would allow it to be peer review published or cited academically,” said one source familiar with the controversy.

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