While I greatly appreciate IBD, the only ‘crisis’ that Covered California faces is being unable to sustain half million dollar salaries, huge benefits, and an advertising splash worthy of a Hollywood blockbuster. They’ll have to choose which of those they get to keep, as they will still be swimming in cash.
If you’re unclear how this works, walk over to your benefits manager and ask if they can pull out the rates for the company health insurance. Look at the line items, and see how much you’re paying for Covered California or whatever your local health exchange (or the federal version..) And now multiply that by virtually every corporate employee in the United States.
Richard Simmons wept.
Employer-provided insurance is generally not part of the Exchange so they are not collecting the excise tax on those policies.