Friday, August 23, 2013

Do You Think This Might Impact the Cost of Vacation?

Where will you go on vacation next year? Some place close by or maybe take an airplane to some exotic isle? Or maybe just a fun place to play a round or more of golf.  

You might want to buy your ticket now before the price goes up.
large employers who self-insure should be exempt from most of Obamacare’s most onerous regulations. It turns out, however, that even America’s largest companies face higher costs due to the health law. A recently-leaked letter from Delta Air Lines to the Obama administration states that the “cost of providing health care to our employees will increase by nearly $100,000,000 next year,” much of it due to Obamacare.

$100 million isn't peanuts.
Self-insurance works a different way. Many large employers, instead of paying premiums to an insurance company, cut out the middleman and pay directly for the health costs that their workers incur. This involves additional financial risk for the employer, but the company saves money that would otherwise go to an insurer’s overhead.
This is important.

With any self funded plan, including Delta, the PLAN design can have a major impact on the number of claims paid as well as the total dollars spent on claims.

If a plan has to cover more things (such as birth control at no cost to the insured) that cost directly impacts claims and is passed on in the form of higher premiums.
The law charges Delta a “reinsurance fee” that goes toward funding the law’s subsidized insurance exchanges. But Delta employees get coverage from Delta, not from the exchanges; hence, the fee is effectively a $10 million tax on Delta for other government purposes.
Just another of those hidden Obamataxes.
“More than 8,000 (adult) children [have been] added to our rolls resulting in a permanent increase in our overall costs of about $14 million per year.” 
That's the provision requiring health insurance plans to cover "children" up to age 26.

All these free and wonderful things Mr. Teleprompter wants us to have come with a price.
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