Obamacare has not lowered health insurance costs but it has ended the era of retirement health insurance plans paid for by companies. International Business Corp or IBM is only the latest company to move its 110,000 retirees off company health insurance. These retirees will be thrown onto the government exchanges.
It’s unaffordable even for a wealthy company like IBM. Many companies have already dropped retirees, IBM is not the first.
The exchanges, which will eventually lead us into single payer, will become far more important as more and more employers drop health coverage for retirees. Where will all these subsidies come from? The American taxpayer and China?
All retirees will receive a one-time lump sum in exchange for the past promise of lifetime health insurance.
“Cost increases under our current retirement group health care plan are no longer sustainable for you,” IBM said in the notices to retirees. “Health care costs under IBM’s current plan options for Medicare eligible retirees will nearly triple by 2020, significantly impacting your premium and out of pocket costs,” the notice said.
What is particularly onerous is the fact that we are taking the private sector out of the equation when paying for healthcare. The entire burden will be on taxpayers.
How is the American taxpayer going to cover all these people without rationing? We can’t even cover Social Security, Medicaid, or Medicare and Mr. Obama will not do anything to modify these programs to make them workable.
Check out the graph via zerohedge if you doubt that Obamacare has only made the situation worse. Zerohedge asks the question, “…the bigger question is how and where will the final subsidy to all these plans, whether Medicare or Obamacare, come from, especially when one expands underfunding away from private enterprises to encompass the public sector as well.”