November 12, 2010
An analyst from McKinsey & Company knocked the socks off insurance company executives yesterday when she told them the new health law will bring “fundamental disruption to the health care economy” — so much so that “something in the range of 80 to 100 million individuals are going to change coverage categories in the two years post-2014.”
They will lose their employer coverage, move into exchanges, or go on to Medicaid. This would be an extraordinary disruption that will cause widespread outrage.
Allisa A. Meade of McKinsey didn’t stop there in saying the markets are going to be upended. She told the meeting of America’s Health Insurance Plans in Chicago on Thursday that the health law also will create a subset of 30 to 40 million people who could be called an “outlaw market” of Americans who choose not to buy coverage and to pay a tax penalty instead.
According to Congressional Quarterly, “Meade said that population is likely to be healthier and wealthier than other Americans and that it might offer an economic opportunity to plans to sell low-cost products.
“It’s not clear, however, to what extent such plans would be permitted under the law. Another potential concern would be a possible stigma attached to selling plans to people who do not comply with the health law,” John Reichard of CQ reported.
This is unbelievable! Is ObamaCare going to create a nation of outlaws?
McKinsey also predicts many employers will drop coverage because it will make more economic sense to pay a penalty that is lower than the cost of providing coverage. Depending upon how many do, the individual market for health insurance could grow by up to 300 percent. Whatever actually happens, Meade said companies in essence must start from scratch in their individual insurance divisions because that market will change so dramatically
Editor’s Note: Article obtained from www.galen.org