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Saturday May 18th 2013

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Healthcare Law Encourages Business to Cut Back Benefits

The Health Care law contains a number of policies that create perverse financial incentives for employers to stop offering health insurance to their employees. House Republicans on the Ways and Means Committee said employers would save billions of dollars if they quit offering health coverage to their employees and instead pushed workers into newly created insurance exchanges. Ways and Means staff analyzed healthcare costs at 71 of the Fortune 100 companies. Those firms would save a collective $28.6 billion in 2014 by dropping their health coverage, according to the committee’s report. Over the next decade, they’d save about $6 billion each. Such a move would affect more than 10 million employees and dependents according to a report on The Hill’s Healthwatch.