I wonder what the law says about employers having to provide health insurance for employees. My employer provides single or family policies, and pays 80% of the cost. Is that still legal? Can they force me to pay 20%? 30%? 40%? 50%? 100%? What does it mean to “provide health care?”
As with your employer, McDonald’s, and all employers, the personnel costs are a fixed percentage of the overall business plan. Health care is a personnel cost, just like salaries, unemployment compensation, social security, and any other “benefit” an employee gets.
Health care has just moved from a “benefit” which is bestowed by discretion of the employer, to a “mandatory cost” like social security and unemployment or workmen’s comp. It will all go into the package of determining the personnel “bottom line,” which will drive how many employees the company has, and what their rate of compensation will be.
My guess is that companies are going to cut staff, hold or cut pay, or some combination thereof. It will not be pretty. And that’s assuming the company decides in the first place to continue operations in the United States at it’s current model, outsource, or completely discontinue operations here entirely.
Jury is still out because Madam Sillybus will make the final determination but as an employer, it is my understanding that the plan I offer my employees will be evaluated to determine appropriate level of coverage. Plan we now have which is tailored to the needs of my employees has no coverage for HIV, a limited amount for chemotherapy, no maternity, no mental health benefits and no wellness coverage. Very large deductible because it basically is to cover hospital costs. Employees pay flat monthly amount into an HSA and I pay 50% of premium. Have already been advised in phone call with my agent that this plan will probably be disallowed as it doesn’t cover enough. If that happens, I won’t have insurance for anyone but my family members. Sad but a fact of life. At least they will have a paycheck.
Once the "government insurance exchanges" are set up, your employer is likely to cancel your group coverage entirely. You'll then have to buy your own coverage at whatever price the government approves, or pay a fine and wait to get insurance until you need it.
At least, that's what I've been able to glean from the bill. Nobody, even the traitors that voted for it, knows exactly how the mechanisms will work.
Welcome to Amerika.
Live Free or Die
I read a summary yesterday -- I'm not sure it was accurate, or my memory was accurate:
A business with more than 50 full-time employees must provide health insurance that covers at least 60% of medical costs. Part-time employees are included "pro-rata", so two half-time employees are the equivalent of one full-time employee.
I'm not sure if part-time employees have to be covered. If they do, then this would increase the cost per part-time employee, and it would be cheaper to only hire full-time employees (good-bye to after-school jobs).
It will also create an advantage for outsourcing more service/software/engineering jobs overseas.