Little-Acorn
Well-Known Member
Could Obama be the ultimate (if inadvertent) "New Era Conservative"? He's making government "help" so oppressive that huge numbers of people are now shying away from it.
Actually, I approve of this trend. The idea of getting health insurance through your employer has always been strange. I mean, if I were in the market to explore and purchase health insurance for me and my family, Joe's Lawnmower and Landscaping would probably not be high on my list of possible providers.
It was started, of course, by government interference in the free market (as so many truly silly things are). During WWII, FDR froze wages and salaries. Companies found themselves unable to offer higher wages to try to attract better workers. But they realized that "benefits" had NOT been frozen, so they started adding non-cash perks to try to compete for employees. Free health insurance was one of them. And since govt rules didn't count this as "wages", it developed that the money employers paid for this insurance, didn't get taxed as "income". People got used to employers "providing" this "free" health care coverage, and those who didn't have ti realized they had to buy their own (which was fine)... but with money that had been taxed, unlike those whose coverage was employer-provided.
It would be a decided advantage to get rid of this govt-inspired anachronism. Weaning people off this particular government teat will be as painful as breaking any other addiciton. But that doesn't mean it's not a good idea.
And now, by piling up more and more costs and expenses upon employers, the Obama administration might be accomplishing that very thing.
Until they start passing more laws requiring employers to keep paying. Socialistic programs like this always wind up requiring more and more government regulations and restrictions, to force people to take part.
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http://www.marketwatch.com/story/firms-halting-coverage-as-reform-starts-survey-2011-06-06
Firms halting coverage as reform starts: survey
30% of companies say they’ll stop offering health plans
by Russ Britt, MarketWatch
June 6, 2011, 2:40 p.m. EDT
LOS ANGELES (MarketWatch) — Once provisions of the Affordable Care Act start to kick in during 2014, at least three of every 10 employers will probably stop offering health coverage, a survey released Monday shows.
While only 7% of employees will be forced to switch to subsidized-exchange programs, at least 30% of companies say they will “definitely or probably” stop offering employer-sponsored coverage, according to the study published in McKinsey Quarterly.
The survey of 1,300 employers says those who are keenly aware of the health-reform measure probably are more likely to consider an alternative to employer-sponsored plans, with 50% to 60% in this group expected to make a change. It also found that for some, it makes more sense to switch.
Click to Play Are profit forecasts too optimistic? A 4% economic-growth rate for 2011 now looks like a pipe dream. In that case, assumptions about corporate earnings may be high, especially with the Federal Reserve's latest bond-buying program winding down. Kelly Evans discusses.
“At least 30% of employers would gain economically from dropping coverage, even if they completely compensated employees for the change through other benefit offerings or higher salaries,” the study says.
It goes on to add: “Contrary to what employers assume, more than 85% of employees would remain at their jobs even if their employers stopped offering [employer-sponsored insurance], although about 60% would expect increased compensation.”
A number of competitors will emerge in the insurance market once reform provisions start to take effect, according to the McKinsey Quarterly study. These firms will be needed to provide a transition for those moving from employer-sponsored insurance to other coverage options.
Actually, I approve of this trend. The idea of getting health insurance through your employer has always been strange. I mean, if I were in the market to explore and purchase health insurance for me and my family, Joe's Lawnmower and Landscaping would probably not be high on my list of possible providers.
It was started, of course, by government interference in the free market (as so many truly silly things are). During WWII, FDR froze wages and salaries. Companies found themselves unable to offer higher wages to try to attract better workers. But they realized that "benefits" had NOT been frozen, so they started adding non-cash perks to try to compete for employees. Free health insurance was one of them. And since govt rules didn't count this as "wages", it developed that the money employers paid for this insurance, didn't get taxed as "income". People got used to employers "providing" this "free" health care coverage, and those who didn't have ti realized they had to buy their own (which was fine)... but with money that had been taxed, unlike those whose coverage was employer-provided.
It would be a decided advantage to get rid of this govt-inspired anachronism. Weaning people off this particular government teat will be as painful as breaking any other addiciton. But that doesn't mean it's not a good idea.
And now, by piling up more and more costs and expenses upon employers, the Obama administration might be accomplishing that very thing.
Until they start passing more laws requiring employers to keep paying. Socialistic programs like this always wind up requiring more and more government regulations and restrictions, to force people to take part.
----------------------------------
http://www.marketwatch.com/story/firms-halting-coverage-as-reform-starts-survey-2011-06-06
Firms halting coverage as reform starts: survey
30% of companies say they’ll stop offering health plans
by Russ Britt, MarketWatch
June 6, 2011, 2:40 p.m. EDT
LOS ANGELES (MarketWatch) — Once provisions of the Affordable Care Act start to kick in during 2014, at least three of every 10 employers will probably stop offering health coverage, a survey released Monday shows.
While only 7% of employees will be forced to switch to subsidized-exchange programs, at least 30% of companies say they will “definitely or probably” stop offering employer-sponsored coverage, according to the study published in McKinsey Quarterly.
The survey of 1,300 employers says those who are keenly aware of the health-reform measure probably are more likely to consider an alternative to employer-sponsored plans, with 50% to 60% in this group expected to make a change. It also found that for some, it makes more sense to switch.
Click to Play Are profit forecasts too optimistic? A 4% economic-growth rate for 2011 now looks like a pipe dream. In that case, assumptions about corporate earnings may be high, especially with the Federal Reserve's latest bond-buying program winding down. Kelly Evans discusses.
“At least 30% of employers would gain economically from dropping coverage, even if they completely compensated employees for the change through other benefit offerings or higher salaries,” the study says.
It goes on to add: “Contrary to what employers assume, more than 85% of employees would remain at their jobs even if their employers stopped offering [employer-sponsored insurance], although about 60% would expect increased compensation.”
A number of competitors will emerge in the insurance market once reform provisions start to take effect, according to the McKinsey Quarterly study. These firms will be needed to provide a transition for those moving from employer-sponsored insurance to other coverage options.
