The McKinsey Study on Health Insurance Could Refuel the Healthcare Debate

In case the Affordable Health Care Act of 2009 has not stirred up enough controversy, a recent study by McKinsey and Company may add to fuel to the flame. According to the research study, The McKinsey Study on Health Insurance, the health care law would cause many employers to stop providing health care coverage for employees. Those doubtful of the research study findings, including the White House and media journalists, have requested information about the methodology used to reach some conclusions, which McKinsey and Company refuse to provide.

McKinsey and Company is a global consulting firm that provides research and recommendations to private, public and social organizations. The company has a diverse client portfolio across a broad section of industries, including healthcare, entertainment and transportation. It is believed that many participants in the research study included McKinsey clients.

From a political perspective, one would be hard-pressed to prove a right-wing conspiracy behind the study findings. Associates at McKinsey gave more to the Obama campaign than the McCain campaign. Further, the company has built its reputation on providing apolitical analysis of the impact that public policy has on its clients. Seemingly, the primary agenda for McKinsey is to provide business advice that is sound, strategic and thoughtful.

Questionable Research Methodology

The results of the McKinsey Study on Health Insurance raise questions because outside analysts are unable to confirm whether the surveyed companies represent American employers. A statement by the authors of the study indicates that over 1,300 employers representative of a broad selection of industries participated. Additionally, the structure of the survey questions was not published. Omitting this information causes some to wonder if the questions could bias the answers provided by respondents.

Another criticism of this study is information McKinsey did reveal about its methodology. Prior to completing the survey, McKinsey educated respondents about the possible implications of the employer-sponsored insurance required by the new healthcare law. Respondents received this information before they were asked about their possible strategies after the law takes effect in 2014.The research study showed that 50 percent of respondents indicated they would stop providing employer-sponsored health insurance.

As for the White House, this study is largely dismissed as something that is not in sync with other reports from other organizations such as the Urban Institute, Mercer and the RAND Corporation. An additional argument is the parallels between the Affordable Health Care Act and the Massachusetts Health Care Reform Law, known as Obamacare and Romneycare respectively. Since Massachusetts did not experience a decline in employer-sponsored coverage, the White House believes the same will not occur under the federal law. However, critics point out that the scales related to taxes and subsidies change with national coverage.

The Debate Wages On

Both sides of the debate agree that health care costs will continue to rise for employers and employees. The source of the increase, which is becoming increasing unsustainable, continues to be the contentious spot. While some agree that employers will cancel health insurance coverage, many also believe that the individual penalty will prompt more employers and individuals to buy insurance.