Companies Say Health Care Costs Hard to Swallow (Obamacare Eliminates Retiree Drug Subsidy Program)

Associated Press ^ | 03/26/10 | Josh Funk

[Reaganesque]

The health care overhaul will cost U.S. companies billions and make them more likely to drop prescription drug coverage for retirees because of a change in how the government subsidizes those benefits.

In the first two days after the law was signed, three major companies — Deere & Co., Caterpillar Inc. and Valero Energy — said they expect to take a total hit of $265 million to account for smaller tax deductions in the future.

With more than 3,500 companies now getting the tax break as an incentive to keep providing coverage, others are almost certain to announce similar cost increases in the weeks ahead as they sort out the impact of the change.

Figuring out what it will mean for retirees will take longer, but analysts said as many as 2 million could lose the prescription drug coverage provided by their former employers, leaving them to enroll in Medicare's program.

White House spokesman Robert Gibbs defended the tax law change Thursday, saying the original provision allowing companies to deduct the federal subsidies from their taxable income was a "loophole" that will be closed by the health care overhaul.

For the government, the tax changes are expected to raise roughly $4.5 billion over the next decade to help pay for the health overhaul. Some of the savings would be negated by retirees enrolling in the Medicare plans.

"You're increasing the incentive for companies to say 'We don't want to be in the health care business any more,'" said James Gelfand, senior manager of health policy for the U.S. Chamber of Commerce, which fought the overhaul.

American industrial companies that are struggling to compete globally against companies with much lower labor costs are particularly likely to eventually drop retiree coverage, said Gene Imhoff, an accounting professor at the University of Michigan.

[Reaganesque]

This article was referrenced in another thread and I thought it should have it's own thread.

[dalebert]

it does...medicare is also refusing to pay for many tests required by doctors. this will finish off a lot of people i know.

[Buckeye McFrog]

TV ads about this needs to start running TODAY!

Every time a layer of this onion gets peeled the C of C or someone needs to make ad buys.

[Logical me]

I'm rapidly at the point of I don't give a shi@ anymore. I can survive but I feel real sad that most Americans will be living on a shi@ pile. For the few years I have left, the joke in on young Americans. So sit on your as@ and act like fools. Your problem.

[ZULU]

Well, they will die happy, content in the knowledge that the death of unproductive Americans will benefit millions of parasitic illegal invaders, thanks to Barack Hussein.
(Sarcasm).

HOWEVER, don't give up hope.

If the GOP demonstrates uncharacteristic intelligence and political acumen, they will be a party to the suit by many state AGs as well as institute suits of their own on the constitutionality of this monstrosity of a piece of legislation, tying it up in litigation until they are able to retake Congress, and like cutting off the head of a venomous reptile, cut off all funds for this implementing this thing until the Marxist Muslim in the White House can be defeated in an election or impeached and then exposed for the fraud he is and sent to a Federal Prison for the rest of his miserable life.

[Wyatt's Torch]

For the government, the tax changes are expected to raise roughly $4.5 billion over the next decade to help pay for the health overhaul. Some of the savings would be negated by retirees enrolling in the Medicare plans.

Exhibit eleventy-bajillion who CBO static scoring is pure, unadulterated crap.

[dalebert]

it will never happen. sad

[PLD]

[AnotherUnixGeek]

TV ads about this needs to start running TODAY!

Who's going to run them? The geniuses at the RNC? They didn't do it before the bill passed. I'd like to see it but I'm not holding my breath.

[ZULU]

It will, and we will make it so.

Keep the faith.

Stranger things have happened - like an Islamic viper who is probably not even an American Citizen, getting elected President so soon after an unprovoked Muslim attach which incinerated thousands of American civilians.

[ReneeLynn]

It really makes me angry/angrier. My mom watched the replay of the signing on the news the other day and said to me, “This isn’t good, is it?”.

[Reaganesque]

This is, in effect, a 28% tax hike on retirees who are on this program.

[momincombatboots]

Hope they are not going Medicare Rx to Walgreens then. Hmm, the deem-o-crats.. they just love old people and children. Guess they forgot they will get old as well.

[Repeat Offender]

For the few years I have left, the joke in on young Americans. So sit on your as@ and act like fools. Your problem.

Yeah, I'm just under 30 and would like to say thank you. I'm sure in all your long years, your generation never had the chance to stop, prevent, or get rid of any of the entittlement programs beore it came to this.

So, yah, it looks like it is "our" problem.

Good attitude you got.

[greyfoxx39]

Thanks for posting this thread, Reaganesque. I posted the following link on Facebook, and encourage all of you to post this link to the social networking site you may have access to.

Timeline of Major Provisions in the Democrats’ Health Care Package

This is just a SAMPLE of what is coming down the pike for seniors.

The 500-billion dollar cut to Medicare is just the beginning, and remember folks, everyone will end up on Medicare eventually!

 

For the seniors who voted democrat in 2008, here's the payoff: (Very few FReepers, I hope.)

In 2011

•No longer allowed to use FSA, HSA, HRA, Archer MSA distributions for over‐the-counter  medicines
•Medicare cuts to home health begin

•Medicare reimbursement cuts when seniors use diagnostic imaging like MRIs, CT scans, etc....
•Medicare cuts begin to ambulance services, ASCs, diagnostic labs, and durablemedical equipment

•Seniors prohibited from purchasing power wheelchairs unless they first rent for 13 months.

The really magnanimous part..."Seniors who hit Part D “donut hole "in 2010 receive $250 check (3/15/11)" WOW! A whole $250!

 And for those of you with aging parents...also in 2011,

•New Medicare cuts to long‐term care hospitals begin (7/1/11)
•Additional Medicare cuts to hospitals and cuts to nursing homes and inpatient rehab facilities begin (FY12)

 

 

I'm wondering if seniors are prohibited from purchasing a power wheelchair even if they pay ALL the cost?

Note: I was forced into Medicare by my insurance company when I hit 65.

[JoeFromSidney]

I had a better drug plan with my former employer than Medicate Part D. However, when Part D became law, my former employer dumped me on the Feds. Costs more. I get less. Thank you, George Bush.

The same thing will be happening now, with employer plans.

[Nachum]

The list, ping

[Reaganesque]

Absolutely frightening! They’ve even eliminated HSAs. Wow!

[Enough is ENOUGH]

The attached link should answer some questions about the the government’s role behind the increases in health care premiums:

http://www.ramsgate.biz/Headline%20News/Medicare,%20Medicaid%20underpayments%20push%20private%20premiums%20up.htm

[frposty]

“You’re increasing the incentive for companies to say ‘We don’t want to be in the health care business any more,’”

Music to my ears! That’s not to say the Obamacare package is what we want. I think its opponents should be vowing to change it rather than repeal it. It ain’t gonna get repealed.