A new study done by McKinsey & Company says that the healthcare reform of Barack Obama could cost as many as 78 million Americans their current health insurance. The study says that nearly one-third of employers may opt out, ending their current employee health benefits. This is significantly higher than the estimated 7% predicted by the Congressional Budget Office. The promise of Obama Care, that people would not lose their existing benefits, is one more that simply avoids economic reality. The new study may itself be way off, as a more realistic view would say that 50% or more businesses would prefer paying the $2,000 fine per employee, rather than spending $6,500 or more to cover each worker.

obama healthcare reform

During the summer of 2009, while Obama promoted health care reform instead of dealing with the sagging economy and mass unemployment, the public was told by the White House that the 2,000-plus page law would help provide insurance to some of the estimated 40-50 million Americans without insurance. But even after the new law takes its full effect in 2014, it may, at best, only add some 10-12 million uninsured Americans, mainly those between the ages of 18 through 26 who could be carried on their parent′s policies. So, even if the CBO estimate of 7% of businesses dropping coverage will wind up costing about 26 million Americans their current health insurance. A definite net loss.

We have already seen thousands of businesses and organizations, including major employee unions, acquire waivers from the Barack Obama administration to avoid compliance with the healthcare reform law. One-fifth of those from Nancy Pelosi’s congressional district alone. That the new study by McKinsey & Company contradicts earlier predictions by the Congressional Budget Office is not surprising. What is surprising is how many advocates for the new law actually think that more people will wind up having health insurance after the law takes full effect than before. The realities are the opposite. But then Socialists are not very bright, are they?

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