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Obamacare incentive for employers to drop insurance plans?

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  • Description

    A look at an unforeseen consequence of health care law

  • Duration 3:25
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-- about a health care law is obviously a polarizing issue in America now there is another law coming into play.

The one about unintended consequences.

Chief national correspondent Jim Angle tells us how it works in this Fox News exclusive.

A new survey a fortune 100 companies finds that the new health care law created some perverse incentives for employers to drop their insurance plans.

In a pure dollars and cents.

Standpoint it could not be more clear you save a lot of money hundreds of millions of dollars for some of these good company -- -- -- no longer providing coverage.

Republicans on the house Ways and Means Committee chaired by representative Dave Camp surveyed the fortune 100 companies about their health care cost 71 comedies with five point nine million employees responded.

Even after paying a penalty of 2000 dollars per employee that companies stand to save 28 point six billion dollars and 2014 alone by shifting employees to government exchanges and would say more than 422.

Billion over the first ten years -- all the.

-- penalties for the employers to drop coverage or very low.

And the subsidies for the workers in the exchanges are very high.

Some analysts though are you large companies would be reluctant to drop coverage.

I think competition for labor is still intense.

And to recruit and retain that talented workforce you've got to provide generous benefits the new exchanges Rudolph for several choices of plans and workers would get generous federal subsidies which only phase -- about 88000.

Dollars in income.

So the exchanges could be attractive to both employers and workers.

If -- large employers work with their low wage workers they can move many millions of them out of their plans.

And into the exchanges and both sides will win.

Though there's a debate over how many large companies might drop insurance there is little doubt about smaller companies small employers might very well say.

This is administratively.

Easier for us.

And our employees can get a very good deal on the state exchanges and give one company in an industry makes the change others may have to follow.

I think you'll see.

A lot of employers don't wanna be the first but they have slowly don't wanna be the last.

Can Florida drop coverage for one restaurant drops offering coverage they're competitors in the local community are likely to follow -- that could be a snowball effect.

Of course no one knows how many companies may drop insurance but they could pay the fine -- several thousand dollars per worker and offered this year part -- -- -- higher wages making it attractive to the workers as well.

The higher cost of subsidies though.

Would fall on taxpayers.

Brett.

And -- some news today on that EPA official who had some controversial remarks to co workers that's right Al -- -- who compared EPA enforcement philosophy too early Romans crucified a few people to make an example of them resigned today saying his continued service would distract from the agency's work.

And senator James -- off of Oklahoma who brought the remarks -- said the resignation does nothing to solve the problem.

And noted that he quote was just being honest his choice of words reveal the truth about the war the EPA has been waging all American energy producers.

Another critic says -- and -- is trying to say the administration from the political fallout but that there's no indication the regulatory crucifixion is will stop.

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