“It’s a window into why Obama-Care costs will quickly spiral out of control.”
Right after Obamacare passed the HR manager told me that the Fortune 500 company I worked for was planning on dropping all insurance as soon as it kicked in and putting everybody on Obamacare with a self-paid medical account that takes advantage of some tax loophole. (I think you don’t pay taxes on the money you put into it, but if you don’t use it you lose it. The intention is you get a tax break on things Obamacare won’t cover.)
I’d guess that every company must drop health insurance if their competitors do. Otherwise, they’re at a competitive disadvantage. Also, they have to do it first, as it takes a year to get out of your insurance. A year of higher rates than your competitors could put you out of business.
The small company I worked for before retiring was strongly considering dropping company paid medical and paying the penalty.