New Research Shows 30 Percent Of Employers Will Drop Healthcare Coverage After Reform

Discussion in 'Politics' started by B_Marius567, Jun 11, 2011.

  1. B_Marius567

    B_Marius567 New Member

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    t may be goodbye to employer-based health care for many Americans a few years from now, according to a new study that shows businesses are unlikely to play ball under the new health care reform regulations.
    At least 30 percent of employers will “definitely” or “probably” stop offering health insurance once the health care reform law kicks in beginning in 2014, Among companies that are highly familiar with the Patient Protection and Affordable Care Act, the number that expect to abandon offering health care shoots up to 50 percent.
    The study, released Tuesday, was based on projections from a survey of 1,300 employers of various sizes and industries as well as other proprietary research. Its release coincides with an 11th U.S. Circuit Court of Appeals hearing in Atlanta today that challenges health care reform legislation.

    McKinsey also found that at least 30 percent of employers believed they would reap economic benefits by dropping health care coverage, even if they spent more on providing better benefit offerings or higher salaries. Those employers who think they would save may be right, under current legislation: Employers that drop coverage would pay an annual penalty of $2,000 for each full-time employee, a lot less than group plan costs, which averaged more than $9,500 per employee last year,

    Read more: New Research Shows 30 Percent Of Employers Will Drop Healthcare Coverage After Reform Kicks In - Heavy Doses - Portfolio.com

    I wounder how The tax payers with pay government
    healthcare to help Employers keep more money in the bank?

    democrats want to make Employers rich and make the tax payers boke at the same time.
     
  2. Who_Dun_It

    Who_Dun_It New Member

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    Actually, if there were some sort of public health care plan available, that could be a money saver for both industry and worker.
     
  3. D_Fiona_Farvel

    D_Fiona_Farvel Account Disabled

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    Without reforms companies were already limiting healt care coverage and benefits through a variety of measures, which seems more of an ongoing trend rather than new development. Here's a NYS study on the issue: link (PDF)

    Rather than think in terms of political parties, perhaps viewing the inadequacies of the welfare state - particularly in terms of inability to pull the trigger on socialized health care decades ago and maintain higher (1950s) tax rates as contributing factors would be a better solution? All of these issues are connected and, if the US wants healthy citizens, will likely have to be addressed with even more reforms until it works.
     
  4. itsthepopei

    itsthepopei Active Member

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    i give a true public option another 30 years the right has backed itself into a hole so deep it has begun to reject its own ideas and substitute them with insanity. It will take time to moderate the crazy sauce they have so library poured into the political steak.
     
  5. cruztbone

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    and that will simply bring about single payer healthcare faster. thank you president Obama. :smile:
     
  6. sargon20

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    The bottom line is employers have been slowly 'off-loading' health care costs to the employee for 20 years now with or without healthcare reform. Like the quickly vanishing pensions of yesteryear and the desire of the Republican Party to gut Social Security, Medicare, Medicaid and the E.P.A. we are not far from the day when the average middle American will have nothing but the pesticide ridden crumbs the rich sweep off the table.

    Additionally this 'research' is by no means undisputed (from the same article):

    The McKinsey study is in sharp contrast to another new survey released today by the nonprofitInternational Foundation of Employee Benefit Plans. With responses from 1,350 benefits specialists and managers, it paints a rosier picture of health care reform's reception by businesses, indicating that less than 1 percent of employers (0.7 percent) plan to stop providing employees with health care coverage in 2014, when “play or pay” provisions become effective.


     
  7. Domisoldo

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    It is highly unlikely indeed that large employers will altogether drop health coverage from their total compensation package, at least for all their employees.

    Such a move would instantly make them appear far less attractive to skilled, experienced workers, many of whom of parenting age, and thus loathe to settle for a lesser coverage for their family.

    However, smaller, cash-strapped employers may find that paying is far more operationally sound than playing.

    I suspect the 2 studies were sampling very different populations of employers.


     
  8. FuzzyKen

    FuzzyKen New Member

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    As health care premiums for employers have escalated the care packages have been trimmed again and again already. I am a skeptic and tend to research things thoroughly. I have many friends residing in Countries covered under national health care acts. Places with which I am in regular contact include Canada and the U.K.. In both locations one can purchase additional coverage for more esoteric things, but under both plans basic health care rights are guaranteed to the citizens of these countries. There is not one of the individuals that I know that is dying to move to the States so that they can pay a fortune for basic care and medications out of their own pockets. It may be flawed, but from what I have both heard and observed the individuals in both of these places have superior care to ours, and, because their maintenance is better they often prevent things which are on the "too late" list in the States. Not being a citizen of any of the countries who maintain what the enemies call "socialized medicine", I can't speak first hand, but, I am hearing none of the complaints that the enemies of this tend to scream constantly.

    I look at it as we have a different problem. The people against it on a daily basis face lobbies that have incredible power and financial clout. They buy your representatives on a daily basis. The only thing preventing the corporations from taking this whole shebang over completely is the one thing they are afraid of and that is the voter. In order to do what they do and to rake in even more money they are foced to spread "disinformation" to sway the voter to prevent audits, investigations and other things that would show this for what it truly is. Sad but true
     
  9. B_starinvestor

    B_starinvestor New Member

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    The healtchare plan is really going to create major shifts in corporate America.

    First off, as an employer, why wouldn't I just get rid of all my employees (thereby avoiding healthcare costs & the $2k penalty) and just outsource everthing?

    If you have a small business, and with the unemployment pool so high, this doesn't seem that outrageous. You also avoid unemployment, worker's comp and social security tax on the outsourced jobs.

    Depending on how the elections turn out next November, I'm not sure that healthcare bill has a real bright future.
     
  10. Industrialsize

    Staff Member Moderator Gold Member

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    The study the OP is based on isn't worth the paper on which it was printed:
    "
    Under public pressure from top Democrats in Congress and from professional peers, the firm has issued a long statement partially defending the study and explaining the roots of the kerfuffle. McKinsey has also released both the survey materials and results that provided the data from which its report was drawn.
    "We stand by the integrity and methodology of the survey," reads an official statement from McKinsey. "The survey was not intended as a predictive economic analysis of the impact of the Affordable Care Act."

    (I think this ranks up there with "Not intended to be a factual statement.")


    Comparing the McKinsey survey to economic estimates, such as the CBO's, is comparing apples to oranges. While the McKinsey Quarterly article about the survey cited CBO estimates, any comparison is not apt. We understand how the language in the article could lead the reader to think the research was a prediction, but it is not.

    McKinsey Breaks Silence On Disputed HCR Study: We Weren't Making Any Predictions! | TPMDC
     
    #10 Industrialsize, Jun 20, 2011
    Last edited: Jun 20, 2011
  11. houtx48

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    Nationalize the drug and insurance companies and the medical will fall in line only said half jokingly.
     
  12. Domisoldo

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    But it's still OK for Apple to drown in its own cash and slap extraordinarily high markups on gadgets it manufactures outside the US, right?

    Apple makes coolstuff...

    ...whereas Evil Big Pharma corporations are in the lowly business of saving lives (and keeping your dick hard).


     
    #12 Domisoldo, Jun 20, 2011
    Last edited: Jun 20, 2011
  13. Mensch1351

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    In the only other State that begins with "K"!
    My own personal experience!! My company pays NOTHING for my health care. I carry the load totally out of my paycheck. Last year I made a total of $34,228.09 My health insurance cost (which includes dental/vision - disability insurance and "heart" insurance) -- $1,897!!
    My first year working there -- we all got a 2.5% pay hike........THEN they raised our health insurance premiums by 25%!!!! I just love how corporations so value their employees! And now -- 9 years later. Our company just bought 35 new retirement communities in North Carolina and paid CASH!! Our raises this year??? 2%!!! BTWay........ on my $34,228.09 -- I paid a total of $7,039.57 in taxes! THEN you can add the almost $2,000 in health insurance!
    Hmmmmm!
     
    #13 Mensch1351, Jun 20, 2011
    Last edited: Jun 20, 2011
  14. Mensch1351

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    This is sooooooooo typical of the thinking of employers. Sooooo in order to just STOP this kind of "Anti-American" Middle class Labor oppression -- I humbly suggest that ANY company that outsources its operations to foreign countries be leveled both a stiff penalty AND a higher tax rate! A corporation like Haliburton who moved its world headquarters to Dubai should have immediate LOST all of its USA government contracts!! It's time we start punishing corporations for what they are doing to destroy this country's economy AND its middle class!
     
  15. B_VinylBoy

    B_VinylBoy New Member

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    Apple doesn't have a monopoly on any particular item in their respected market. Unlike "big pharma". You don't have to own an iPad or an iPod. But we all need medicine when we get sick.
     
  16. B_starinvestor

    B_starinvestor New Member

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    even with no deductions your federal income tax is less than $3,500 on that income. Maybe check into an amended return. 1040 Tax Calculator (Tax Year 2010) - Financial Calculators from Dinkytown.net
     
  17. B_starinvestor

    B_starinvestor New Member

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    It's not middle class oppression when the government taxes/penalizes/forces benefit costs on employers.:confused:

    That's business owner oppression.
     
  18. vitaman

    vitaman New Member

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    Employers and insurance companies have been increasing employee premiums and reducing benefit coverage for years even decades. Often you have to read the fine print very carefully or experience the specific medical situation that's not covered in order to know this. This and high cost are the central issues that reform is intended to address. Why else are so many people not covered. So naturally once there is an alternative. Low cost pools, a public option, whatever, many will eliminate the employee benefit, but those benefits get eliminated or changed every single year around November. Obama's biggest mistake was promising it would stay the same for people covered under employer plans. It's never the same. It changes for most people every year, they just don't always realize their coverage has been reduced because there is so much fine print and loopholes for the insurance companies.
     
  19. Redwyvre

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    In a way all of this is inevitable. Most Americans want goods and services to be really, really, really cheap so the production of goods and sevices has moved to the third world. Now we're in stiff competition with the third world and yes, most of the third world is hot flat and crowded.
     
  20. sargon20

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    And in another 100 years so too will be the developed world. Mankind's future is about as gloomy as it gets. As long as this number keeps spinning there is no hope. Even if it stops it's most likely already too late.

    The Earth Is Full
     
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