Tuesday, June 14, 2011

McKinsey Report: One Third Of Employers Will Drop Medical Coverage in 2014

Say what?  According to the McKinsey Report a full one third of employers will drop their health coverage because it will be so much more cost effective to pay a fine (or not) and send their employees off for subsidized coverage through the exchanges.  The report was based on a survey of over 1000 employer groups.  The problem is that the Congressional Budget Office estimated that the number will be closer to 7%.....whoops!  Naturally, once the White House got wind of this survey, they were none too happy. 

According to Nancy-Ann DeParle, Deputy Chief of Staff  posted on the White House blog June 8.......“Unfortunately, the [McKinsey] study misses some key points and doesn’t provide the complete picture about how the Affordable Care Act [PPACA] will strengthen the health care system and make it easier for employers to offer high quality coverage to their employees”. 

The White House is diligently trying to push McKinsey to release the scope and breadth of the the study to determine its legitimacy.  McKinsey is pushing back stating that the details of the study are proprietary and cannot be released.

This isn't over..................

McKinsey Quarterly