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Obamacare could save U.S. businesses $3.25 trillion

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Staff writer ▼ | May 7, 2014
A new study finds that the Affordable Care Act (ACA) will save U.S. businesses $3.25 trillion through 2025, largely through ending employer-sponsored health care and shifting health insurance costs to workers and their families.
ObamacareA new study finds that the Affordable Care Act (ACA) will save U.S. businesses $3.25 trillion through 2025, largely through ending employer-sponsored health care and shifting health insurance costs to workers and their families.


Research from S&P Capital IQ Global Markets Intelligence (GMI), a financial information division of Standard & Poor's, finds that the "ACA presents an opportunity for U.S. companies to radically redefine the role they play in the health care system."

GMI's Market Intellect report estimates that S&P 500 companies stand to save nearly $700 billion through 2025 as a result of the ACA, or about 4 percent of these companies' current market capitalization. Using a propriety model, GMI projects that US businesses as a whole could save $3.25 trillion over this same time period.

GMI notes that the "ACA may eventually come to be historically recognized as the starting point of the reconstruction of the U.S. health care benefit industry and a catalyst for how companies provide health care insurance for their employees."

The study likens this vast shift to the employers' migration in recent decades away from providing defined pension benefits in favor of "the defined contribution approach, including IRAs, Keogh plans, and 401k plans."

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