Friday, May 7, 2010

Obamacare! Major Corporations looking to pay penalty, drop employer-sponsored insurance.

It works out the best for both the companies and Obama. It cuts costs for the companies to pay the penalty and dump employees. It also pleases Obama because it is one step closer to getting a single payer system run by the government that Obama has called for in the past.

Don't think the way the bill was made that this was not a result Obama and the Dems didn't think would happen. This is what they want from the get-go.

Internal documents recently reviewed by Fortune, originally requested by Congress, show what the bill's critics predicted, and what its champions dreaded: many large companies are examining a course that was heretofore unthinkable, dumping the health care coverage they provide to their workers in exchange for paying penalty fees to the government.

That would dismantle the employer-based system that has reigned since World War II. It would also seem to contradict President Obama's statements that Americans who like their current plans could keep them. And as we'll see, it would hugely magnify the projected costs for the bill, which controls deficits only by assuming that America's employers would remain the backbone of the nation's health care system.

Hence, health-care reform risks becoming a victim of unintended consequences. Amazingly, the corporate documents that prove this point became public because of a different set of unintended consequences: they told a story far different than the one the politicians who demanded them expected.

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