Large Employer Cost of ObamaCare

Umoney-crossroadsntil now, the mainstream media focus on ObamaCare’s blows has been on individuals and small businesses. But large employers will not avoid the costs of the Affordable Care Act (ACA). According to a new study published by the American Health Policy Institute:

  • The cost of the ACA to large U.S. employers (10,000 or more employees) is estimated at $480 to $590 per employee per year, over the next ten years.
  • These large employers will see overall ACA-related cost hikes of between $163 million and $200 million per employer, or an increase of 4.3 percent in 2016 and 8.4 percent in 2023 over and above what they would otherwise be spending.
  • The total cost of the ACA to all large U.S. employers over the next ten years is estimated at between $151 billion to $186 billion.

Comments (18)

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  1. Elizabeth says:

    “The total cost of the ACA to all large U.S. employers over the next ten years is estimated at between $151 billion to $186 billion”

    That sounds like a lot of money. Is that a lot of money, compared to previous programs?

    • J. Campbell says:

      This is also my particular concern.

      • Steve says:

        According to the study, it is:

        “Although large employers have increasingly focused on managing their health care spending over the past 10 years, their health care costs per employee have continued to rise an average 1.1 percentage points faster than inflation on an annual basis since 2003″

        • Elizabeth says:

          Wow. That’s a long time for spending to be rising. Especially since employers are trying so hard to cut it.

        • Nick says:

          So why? Inflation?

          • Lucas says:

            No, it’s above inflation. My guess would be the rising costs of not having enough quality doctors

            • Wally says:

              Or the increased prices from insurance agencies

            • K. Rogoff says:

              But the application for medical schools is increasingly competitive. Some schools keep rejecting many qualified applicants. If there is a shortage of quality doctors, why don’t they accept more students?

  2. D. Acemoglu says:

    “You may be able to change to Marketplace coverage, but you might not qualify for lower costs on your premiums based on your income. This will depend on the type and cost of insurance the employer provides.”
    This could be a reason but I am still curious about the increase. The government keeps saying that ACA expects to reduce the employment-based health insurance.

  3. Trent says:

    “$163 million and $200 million per employer”

    That is absolutely insane! No wonder employers are dropping their employees back to part time.

  4. Lucas says:

    “health care costs per employee have continued to rise an average 1.1 percentage points faster than inflation on an annual basis since 2003″

    This was even before the ACA, what is contributing to this?

    • Nick says:

      I also notice the year. According to my observation, the price of service-related is continuously increasing for some undetectable reasons.

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