Employers could save billions by dropping workers from health plans, report shows

foxnews.com ^ | 5/1/12 | Jim Angle

[ColdOne]

A new survey of Fortune 100 companies finds that the health care overhaul, contrary to the claims of its authors, created some perverse incentives for employers to drop workers from company insurance plans.

Republicans on the House Ways and Means Committee surveyed the top 100 companies about how much they spent on health care -- a total of 71, covering 5.9 million employees, responded. The results suggested it would be far more attractive for companies to drop workers from those plans than keep them.

[Antoninus]

All part of the plan. Of course, our vaunted government will probably just pass a law making it illegal for them to do so—until a government mandated single-payer “option” is in place. So we’ll end up having no jobs and awful healthcare. Sounds like Eutopia, doesn’t it?

[NonValueAdded]

So, again, then what?

Start with tort reform. Look what it did in Texas. Yet Obamacare is completely silent on the subject. Tort driven medicine is what is commonly attributed to be 10% of healthcare cost. How about starting with a real 10% reduction in cost? Let there truly be a marketplace without all these mandated coverages layered on by gubermint. Then let companies allow you to pay for coverage from the company of your choice with pre-tax dollars. And allow risk-pooling across state lines. Simplify HSA's and educate the public about them.

That's what.

[kabar]

Obama video supporting single payer

[blackdog]

It took a really long time to find who is doing it, but it is Hewitt.

How about just firing anyone from the company who is dishonest? What is standard behavior in the ranks of government employees is not the standard where my wife works. They spend six months doing interviews of thirty references and doing endless background checks on new hires.

[kabar]

No matter what happens with Obamacare, employers will still be unable to profitably operate forever when medical costs exceed inflation. Many have already reached that point. So, again, then what?

I would say trust the marketplace to come up with affordable products. We can use tort reform, Health Savings Accounts, and allowing access to out of state health insurance to level the playing field. We can offer tax breaks for individuals to purchase health insurance similar to what employers get. And we can allow the individual more freedom in the kinds of coverage they want and need. In addition, employees will have to pay more for such plans.

There are really all kinds of proposals out there on how to fix the health care system. Medicare is the real problem and the most difficult to fix. People receive three times what they contributed to the system.

[lewislynn]

Employers could save billions by dropping workers from health plans

Using the Fairtax theory of, if this then that, if that then this, there would be immediate price reductions as a result of the savings.

[RFEngineer]

“I would say trust the marketplace to come up with affordable products”

I agree with you completely here, too. The problem is that the marketplace is distorted by Medicare. Medicare drives demand for services - but then does not pay for them - providers have to make up the gap by cost-shifting.

That should be illegal. If providers cannot be profitable with medicare, they should go out of business or not accept medicare - and not be allowed to cost-shift.

So the marketplace cannot come up with affordable products when demand/cost is driven outside of the very same marketplace

“Medicare is the real problem and the most difficult to fix. People receive three times what they contributed to the system. “

Exactly. But it’s exactly this same issue that makes it such a great “value” for the voters that get it (and therefore difficult for politicians to change). If you insist people pay for the services consumed, they claim you are “trying to kill them”.

The other potential solution is to disallow charging different prices for the same service - again, providers will have to charge their cost of providing - it’s up to the consumer to work out terms of payment - whether cash, insurance, or some other method.

this again distorts the marketplace.

[RFEngineer]

“Start with tort reform.”

Then disallow cost-shifting from medicare or large group plans, then disallow different prices for the same service, then allow alternative medical providers, over-the-counter sales for almost all drugs.....lots of things.

Medicare is the big problem though. It drives demand and sucks out any potential for cost-efficient medical care for those not on medicare, or paying cash.

It’s also socialized medicine, and should be antithetical to every American - but even conservatives will fight for it, so we’re not in a strong position to make any changes.

[tbw2]

Failure to provide the documentation is an excuse to drop even those who should legitimately be covered. Refusal to provide documentation also gives them a reason to drop you.

[kabar]

That should be illegal. If providers cannot be profitable with medicare, they should go out of business or not accept medicare - and not be allowed to cost-shift.

Medicare reimbursement rates are already low so about 12% of doctors no longer accept Medicare patients. And it is worth remembering that 90% of Medicare recipients have supplementary insurance to cover the costs Medicare doesn't. 40% of doctors no longer accept Medicaid patients. Imposing government rates on procedures distorts the market. And patients don't care about costs since they really don't see or pay them in the case of Medicare or Medicaid.

The premium support plan offered by Ryan puts the responsibility more on the patient. If you are interested in reading something about how to fix Medicare, here is an article (written in 2007 but still relevant) by Tom Saving, someone who was a long time public member of the SS Board of Trustees and who I had the pleasure of meeting and discussing the Medicare issue with during a seminar.

We are going to have to ration health care. The only question is who will do it--the government, the insurance companies, or the patient. I favor the patient. We can reduce some health costs if the patient is the one selecting the health services and controlling the allocation of funds. It will force the market to be more competitive.

[RFEngineer]

“We are going to have to ration health care. The only question is who will do it—the government, the insurance companies, or the patient. I favor the patient. We can reduce some health costs if the patient is the one selecting the health services and controlling the allocation of funds. It will force the market to be more competitive. “

Spot on. However, the political reality of getting folks to accept paying for things they think should remain “free” to them is the most daunting problem. Educating folks that it must be this way, is the second most daunting problem.

Many conservatives are as far off the deep end as the most committed communist on the subject of Medicare.

No political party is attempting to educate the electorate.

So we’ll go broke before we find a political solution to this problem, I’m afraid.