Posted on 07/24/2012 11:05:31 AM PDT by Free ThinkerNY
About one in 10 employers plan to drop health coverage when key provisions of the new health care law kick in less than two years from now, according to a survey to be released Tuesday by the consulting company Deloitte.
Nine percent of companies said they expect to stop offering coverage to their workers in the next one to three years, the Wall Street Journal reported. Around 81 percent said they would continue providing benefits and 10 percent said they weren't sure.
The companies, though, said a lot will depend on how future provisions of the law unfold, since most of the key parts are scheduled to take effect in 2014. One in three respondents said they could stop offering coverage if the law requires them to provide more generous benefits than they do now, if a tax on high-cost plans takes effect in 2018 as scheduled or if they decide it would be cheaper for them to pay the penalty for not providing insurance.
While small business don't face fines for failing to offer coverage, companies with 50 or more full time employees face a penalty starting at $2,000 per worker.
(Excerpt) Read more at washingtontimes.com ...
So, if you have 51 employees, you lay two off. Simple enough.
If you really need the work done, get a couple of temps.
Wait until they figure out that the fine is cheaper and a lot less hassle...
Nothing to manage, just one payment a year based on how many employees you have, and you’re done.
If you have 110 workers, you lay off some, and split into two companies.
The fine is cheaper, for the moment. It becomes much more after 2016. The whole thing is a scheme to force single payer.
—Nothing to manage, just one payment a year based on how many employees you have, and you’re done.—
And if you can reduce their compensation by the same amount, it’s a wash. :-)
I'm not really in that position, but if I were, why wouldn't I pay the penalty (errrrr, TAX) of $2k per person instead of insurance? Surely the insurance cost is $2k or more per person.
Well in the depths of the Baraqqi Depression, where there are no other available jobs, your theory is correct.
In normal times when there is job mobility, employers wouldn’t do that because talent would jump ship.
“One in three respondents said they could stop offering coverage if ...it would be cheaper for them to pay the penalty for not providing insurance. “
ALL of them will drop coverage if “it would be cheaper” LOL!
Some may find it possible to reduce cash compensation more than the added insurance cost, but Obamacare is designed so that is very unlikely.
There are still people who have employer health insurance?
You can bet the rent, those who aren't government employees, their employer heath benefits will be coming to an abrupt end.
My employer is handling it differently. As of last month, my employer does not direct hire, we only hire through temp companies now. Fortunately, those of us who were here before that date are still employees, but we were told that could also change depending on the next BOD meeting in the spring.
Boeing is planning on dropping overage.
The fine is well below, WELL BELOW what it costs to provide the excellent BCBS PPO plan.
Other major defense industries are also planning to do the same.
You are right, this is the plan of The Messiah all along. . .to force everyone into a “single-payer” (government) health “care” plan.
I’ve experienced both government”care” (VA for emergency care and 5-days of in-patient treatment), and then when I left(ran away from) the VA I went to a private hospital that was covered by my private coverage—world’s apart in treatment and care.
Private care, private insurance is the way to go.
I want all the democrats who voted for this “care” to agree to be treated like everyone else: filthy government hospitals, obama sisters abusing their position as nurses aides, disinterested and over-worked doctors, shared rooms with no real air flow and stuffy and smelly from urine. . .let The Messiah be cared for like that THEN let him tell us it is just great!
And because the fine is well below the cost of providing insurance coverage, it is a financial win.
Or offshore the work.
Bad news. However, can someone translate this into an investment strategy? Short health insurance companies?
I hope all of you realize the AMOUNT of the fine was intentionally low just to pass the bill. They fully intend to use REGULATION AUTHORITY to jack up the fine many, many times. A tax slush fund that REGULATION AUTHORITY having been given to unelected officials at HHS can use as a hammer against political opponents, anyone that threatens the govt powers expansion.
Businesses have been looking for any excuse to drop health insurance.
The one good thing is that once businesses no longer have to factor in health insurance costs for employees, it could give an advantage to hiring local employees rather than having to outsource.
The one good thing is that once businesses no longer have to factor in health insurance costs for employees, it could give an advantage to hiring local employees rather than having to outsource.
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I wish that would be the case, but where I work is so cheap it will never happen. We outsource our IT and it is a train wreck. The on shore people have to do their job and “fix” what the offshore breaks. American work force only hope it to get rid of the Dummycrats and then and only then will business start to hire. Now Corporations are not hiring in the uncertain times and as much as I hate where I am working, there are precious few IT jobs for someone over 50 in Pittsburgh!
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