American companies with 50 or more employees could save $3.25 trillion over the next decade by dropping health coverage and paying the shared responsibility penalties of the Affordable Care Act (ACA), while shifting their employees onto the Obamacare marketplaces, a report by a division of McGraw Hill Financial concludes.
In a press release, S&P Capital IQ Global Markets Intelligence (GMI) says it believes that the ACA will result in "profound, and possibly unintended, consequences for corporate America, the average U.S. employee, and more broadly, the entire U.S. economy":
- By shifting insurance responsibility to the employee, the ACA presents an opportunity for U.S. companies to radically redefine the role they play in the health care system.
- Using its proprietary model, S&P Capital IQ Global Market Intelligence estimates that the Affordable Care Act could save S&P 500 companies nearly $700 billion through 2025.
- These potential savings represent about 4 percent of the S&P 500's current market capitalization.
- For U.S. companies with 50 or more employees, total savings to businesses could amount to $3.25 trillion through 2025.
- According to model estimates, employers are set to benefit the most as the government takes on a larger funding role.