Large Companies Consider Dropping Health Coverage

[Trianon]

Employees will massively bail to where exactly?

Probably the same place where all the bankers were going to bail to if we didn't bail them out and disallowed multimillion dollar bonuses

 

[Blackjack200]

Health Benefits are a retention tool. Employees that lose their health benefits will go to companies that offer them. If they cannot find another job with health benefits, they are far more likely to work for themselves or retire than they otherwise would be.

I know people that are working today only because they get health benefits.

If anything, it will be like the end of the Defined Benefit pension. A few companies will offer HSA/high deductable plans, and that will gradually spread through the economy.

 

[Hacp]

Good. Perhaps if companies drop health coverage, they can finally start hiring more workers. Health care, contrary to popular belief, is not free. Dropping it will mean that companies who stay in the US can compete better.

 

[spidey07]

Which is exactly what the Dems wanted all along.

Yep. And it's not like it's some evil plot, they say that is the end game.

 

[cubeless]

this should be interesting... i would expect that emps might get some $$$ if they had hc at work before if the emp drops it, but who knows???

when the evil company i work for killed hc for the retirement plan i got nothing in compensation even though i had, for 20 years, considered that benefit part of my compensation...

it's tough being an evil capitalist some days...

 

[Hacp]

Maybe this will encourage Americans to finally face the nation's health care problem and adopt real socialized medicine (which has proven to be far superior, less expensive, less wasteful, and more efficient than our current system).

The only problem we have is that we're covering people who don't pay for services.

 

[CitizenKain]

Good. Perhaps if companies drop health coverage, they can finally start hiring more workers. Health care, contrary to popular belief, is not free. Dropping it will mean that companies who stay in the US can compete better.

Hahahahahaha

Hahahahahahahaha

 

[BlahBlahYouToo]

uh, yeah, in this economy people are going to bail. Think before you speak.

yup, this is the perfect time to implement this.
give everyone a flat raise to pay for their own coverage and they can wash their hands free of providing HC.

 

[Lemon law]

If big business decides to bail big time from their previous health care plans, simply because the penalties cost less, they may suddenly discover the penalties suddenly get largely raised by an angry and united Congress and President. As a gaping loophole suddenly slams shut.

Such a simple amendment to the existing health care law could be implemented very quickly, and quicker than you can say beancounter, those corporations would rethink their decisions. In fact, the mere threat may be enough. Especially if it received GOP and democratic bi-partisan backing. And since many Americans with the best private health care plans tend to be GOP votes, the GOP would be hard pressed not to go along with closing that loophole.

 

[her209]

Health Benefits are a retention tool.

Its also a nice tax deduction for businesses.

 

[highland145]

Its also a nice tax deduction for businesses.

I'd rather have $1 in my pocket and pay tax than give $1 to hc.

 

[daishi5]

1. Bill raises the cost of providing a benefit -> Many companies consider dropping the benefit.

Is this really a surprise to anyone?

If this happens I think it would be a good thing. This would move health insurance to a more free market style model. Employer-provided health care was a bad model, the company paying the bills did not care about the quality of care, the person demanding the care didn't have to pay the price, and the person selling the product did not have to answer to the person using the product.

What an irony it would be if the democrats pushed our HC industry into a free market model after all the republican screams of socialism.

Edit: Oh, and

If big business decides to bail big time from their previous health care plans, simply because the penalties cost less"

Is exactly what any rational company should do. The government raised the price, so if the government is surprised that less companies buy it, they are fools.

 

[PokerGuy]

You think there's a lot of upset people now, just wait until the average cubicle dweller finds out he/she will no longer have health coverage thanks to Obummers new plans for them. I'm starting to think 2012 re-election for Obummer is no longer a shoo-in like I had thought before. No amount of media adoration and cheerleading can disarm that kind of anger.

 

[Zedtom]

If we could magically transform every workers paycheck into the full amount earned with no deductions for company provided health care, the majority of Americans would carry only basic coverage and depend on the government for catastrophic care coverage.

 

[palehorse]

Gee more faux outrage for shit that won't happen

Sure large companies want to save a buck but their not fucking stupid. Anyone with half a brain knows the second a company does this effectively dealing a huge paycut to employees, that said employees will bail in massive numbers.

Get back to me when a large company actually tries this. Ain't gonna happen

Quoted for future use if/when the first large companies begin to do exactly as the OP (and many of us) predicted.

This will lead to a single payer system.

Many of us also predicted this as their ultimate goal.

After all, what's the easiest way to get everyone on board with Government-run healthcare? That's easy: you make them desperate for coverage/care.

Therefore, the first thing the government must do is eliminate any incentives companies may have to continue offering their employees private insurance.

Step two is enrolling those who lose coverage into the Government "option."

Step three is simply waiting until there are no health benefits left at any company and all 300+ million citizens belong to the Government "option."

Step four is increase taxes on all of the above AND leave the fines in place for companies so that the revenue is streaming in to the government coffers from every direction.

Imagine that.

 

[crownjules]

That's what you guys said would happen last summer/fall when we debated it. Trust me, that will never happen.

Why not? Just curious why it's set in stone that this will never happen. If a company decides to forgo all HC benefits to it's employees then it will be saving lots of money in spite of the government fees.

Employees seeking work are going to recognize that the elimination of HC benefits means they need to be compensated in other areas or they're taking pay cuts. If the company really wants to hire on the highly talented with suitable work experience prospect, aren't they going to have to cave to his demands or risk losing him to the competitors? With the larger pool of funds they have available from not spending it on employee HC plans, they can afford to give him an extra $8-10K in it's place.

This is what happens currently with regards to a full time employee vs. some contracted to come in from outside and do the same work. The contractor is paid per hour at a much higher rate than the full time equivalent to make up for the lack of benefits they receive.

 

[Hacp]

Quoted for future use if/when the first large companies begin to do exactly as the OP (and many of us) predicted.


Many of us also predicted this as their ultimate goal.

After all, what's the easiest way to get everyone on board with Government-run healthcare? That's easy: you make them desperate for coverage/care.

Therefore, the first thing the government must do is eliminate any incentives companies may have to continue offering their employees private insurance.

Step two is enrolling those who lose coverage into the Government "option."

Step three is simply waiting until there are no health benefits left at any company and all 300+ million citizens belong to the Government "option."

Step four is increase taxes on all of the above AND leave the fines in place for companies so that the revenue is streaming in to the government coffers from every direction.

Imagine that.

There is a big flaw in your analysis. Government will never let the unions lose their Cadillac plans.

 

[cubby1223]

Everyone knew this was going to happen. And well, this is what the "progressives" in charge want to happen.

Once all the corporations drop health care coverage, the government will swoop in with their rhetoric that corporate America hates us, the government loves us, and in a brief stroke of the pen, fully socialize health care.

 

[IndyColtsFan]

Why not? Just curious why it's set in stone that this will never happen. If a company decides to forgo all HC benefits to it's employees then it will be saving lots of money in spite of the government fees.

I know how companies work. Let's say a company was spending $15K per employee for HC benefits. Let's say the company drops the benefits and the fine is $2K per employee (I am making that number up just for this example). Do you seriously think the company will give the employee a $13K raise? More than likely, the company will give the employee a small amount and then pocket the rest.

From experience, this is what happens. In the past, I've worked for companies that gave you the option of taking health insurance or not. If you decided not to take it, they gave you a piddly little amount of money -- nowhere near the cost of the health insurance they paid for you.

Employees seeking work are going to recognize that the elimination of HC benefits means they need to be compensated in other areas or they're taking pay cuts. If the company really wants to hire on the highly talented with suitable work experience prospect, aren't they going to have to cave to his demands or risk losing him to the competitors? With the larger pool of funds they have available from not spending it on employee HC plans, they can afford to give him an extra $8-10K in it's place.

Maybe at the top, but for the average joe employee, it won't come to fruition.

 

[Throckmorton]

So what? Healthcare "isn't a right". I have my union to negotiate healthcare for me, but I guess it sucks for you guys who don't. I'm sure your employer will be happy to negotiate with you as an individual on the free market though.

 

[nobodyknows]

LOL good luck with that. Your employer will laugh in your face.

Actually around here some employers offer extra wagess instead of health insurance. Married couples take the extra pay and use the other spouse's insurance.

 

[Jhhnn]

Good. Perhaps if companies drop health coverage, they can finally start hiring more workers. Health care, contrary to popular belief, is not free. Dropping it will mean that companies who stay in the US can compete better.

Actually, you're close to the truth w/o realizing it. Socialized medicine gives other first world economies a competitive advantage... Something I'm sure you'll find a way to deny...

 

[shira]

Most have already dumped retirement healthcare...and it now looks like the other shoe is dropping as an unexpected consequence of our recent healthcare legislation. I imagine that these 'great thinkers' who created this 'historic' legislation will resolve the issue by increasing penalties further to a give corporations a more compelling cost/benefit analysis to consider. That's just how they roll.

Nothing in Obamacare induces companies to drop coverage for their employees. If a company is already offering a typical HC plan, all they have to do to comply with Obamacare is to continue offering it. There's no reason their costs would go up under Obamacare (more than costs would otherwise go up without Obamacare).

In other words, blaming Obamacare for company decisions to drop coverage is plain dishonest If a company wishes to save money right now by not offering its employees coverage, it can do so without any penalty at all. Under Obamacare, it will cost a company MORE to not offer coverage.

 

[Jhhnn]

Nothing in Obamacare induces companies to drop coverage for their employees. If a company is already offering a typical HC plan, all they have to do to comply with Obamacare is to continue offering it. There's no reason their costs would go up under Obamacare (more than costs would otherwise go up without Obamacare).

In other words, blaming Obamacare for company decisions to drop coverage is plain dishonest If a company wishes to save money right now by not offering its employees coverage, it can do so without any penalty at all. Under Obamacare, it will cost a company MORE to not offer coverage.

You expected honesty? Really? You are a silly, silly person...

 

[Patranus]

But...but...but....

Obama said I could keep my coverage if I like it.

He PROMISED!!!