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Obamacare Causing More Government Dependence is Nothing to Celebrate

A Rochester based grocer Wegmans has announced that – parting from their usual tradition – they will no longer offer health insurance to their part-time employees.

Stories like this are a dime a dozen.

Similarly, Obamacare is the cause for thousands of layoffs and to blame for employers reducing employees’ hours to part-time status, since businesses will not be penalized for failing to provide health insurance to part-time employees.

But what is striking about this new report is that some people are actually trying to spin part-time employees losing employer-paid plans as a positive thing:

Under the Affordable Care Act, part-time employees are not eligible for health insurance subsidies if their employer offers insurance.

“It’s a win-win. The employee gets subsidized coverage, and the employer gets to lower costs,” [Brian] Murphy, [a partner at Lawley Benefits Group] said.

Subsidized coverage simply means more people will be dependent on the government.  In fact, by 2023, the Congressional Budget Office projects that 19 million will obtain subsidized health insurance coverage. 

That’s nothing to celebrate.  Heritage explains:

[I]f workers can receive access to taxpayer-subsidized insurance through the exchanges, firms are more likely to pay a $2,000 penalty to the federal government rather than pay $10,000 or more to subsidize a family’s health insurance policy. If the trends the CBO identified accelerate when Obamacare takes full effect next year, the cost for federal exchange subsidies could rise by trillions more at a time when the federal government can ill afford more new spending and debt.

So employees don’t just “get” subsidized coverage for free.  Someone has to pay for the many trillions of dollars it will cost.  And that someone is the American taxpayer.

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One thought on “Obamacare Causing More Government Dependence is Nothing to Celebrate

  1. Everyone should send a cancel letter to their health insurance company effective 1/1/2014.
    If we can’t repeal it through the courts we can overturn it with our purse strings.

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