Monday, May 17, 2010

Say Goodbye to Employer Group Health Insurance

If you are looking for a job, especially one that provides group health insurance, don't be surprised if you come up empty. The intent of Obamacare (Patient Protection and Unaffordable Health Care Act) was to  make health insurance more accessible and more affordable.

In fact, it does neither.

Many large companies have already crunched the numbers and figured out it will be cheaper to drop health insurance and pay a fine than it is to continue the much coveted employee benefit.

Now smaller companies are coming to a similar conclusion.

The Heritage Foundation reports:
Thanks to Obamacare, low-skilled job seekers will find it even harder to find work.  And low-income areas will find it even more difficult to attract new businesses.  That’s the lesson drawn from a new analysis by White Castle, the iconic hamburger chain.

Numbers crunchers there looked at how Obamacare provisions would affect the company’s bottom line.  Of particular interest were provisions that hit employers with a $3,000 per employee penalty—even if they offer health insurance—for workers whose household income is low enough and they get subsidized health coverage through a government-run insurance exchange.

Curiously, the penalty for hiring and offering coverage to a low-income worker is 50% higher than the Obamacare penalty ($2,000 per employee) for NOT offering coverage.

What kind of idiot thought that one up? Assess a larger fine for compliance than for non-compliance.
“The net result would be higher unemployment for low- and moderate-income families and higher health insurance costs for their co-workers—the exact opposite of what the bill’s proponents claim is their goal.”

As the White Castle report shows, Obamacare is more likely to hurt than help low-income workers. Additionally, employer penalties create incentives to drop coverage altogether, making a mockery of President Obama’s promise that “if you like it, you can keep it.”

This is what happens when you put someone in charge who lacks real world experience.
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