Sunday, October 21, 2012

New Healthcare Law

My apologies for being too political in my blog but the more I read, the scarier it gets... maybe, I should quit reading. Here are excerpts from a Wall Street Journal article:

"Millions of American workers could discover that they no longer have employer-provided health insurance as ObamaCare is phased in. That's because employers are quickly discovering that it may be cheaper to pay fines to the government than to insure workers.

AT&T, Caterpillar, John Deere and Verizon have all made internal calculations, according the House Energy and Commerce Committee, to determine how much could be saved by a) dropping their employer-provided insurance, b) paying a fine of $2,000 per employee, and c) leaving their employees with the option of buying highly-subsidized insurance in the newly created health-insurance exchange.

AT&T, for example, paid $2.4 billion last year to cover medical costs for its 283,000 active employees. If the company dropped its health plan and paid an annual penalty for each uninsured worker, the fines would total almost $600 million. But that would leave AT&T with a tidy profit of $1.8 billion."

If you were an employer and you had the choice between paying $15,000 per employee and trying to comply with 15,000 pages of law and regulations or paying a $2,000 per employee penalty which would you choose?

The Congressional Budget Office projects that the health law will cost $1.7 trillion over the next 10 years. But given the CBO's history of underestimating costs and the likelihood that the number of people requiring subsidized insurance will be much larger than predicted, I suspect the true cost to the American taxpayer will be significantly higher.

No comments: