DomYngBlk -> RE: Employers looking at health insurance options (10/26/2010 1:03:24 PM)
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ORIGINAL: tazzygirl quote:
ORIGINAL: hlen5 What I want to know is how did this health care reform go from "providing a saftey net to ensure lower costs for all" to "everyone must have insurance, even if self purchased"? What company is NOT going to dump health care when it's incumbent upon the insured to be insured? EFS Erin Shields, a spokeswoman for the senators who wrote that part of the law, says she's confident that when companies do the math, they'll decide to keep offering coverage. That's because employers get to deduct the cost of workers' health care from the company's taxes. Take away the health plan and two things happen: Employers lose the deduction and they'll probably have to pay workers more to get them to accept the benefit cut. Not only will the company's income taxes go up, but the employer will also face a bigger bill for Social Security and Medicare payroll taxes. So it's not as simple as paying $2,000 and walking away. "It is clearly cheaper for employers to continue providing coverage," Shields said. Another wrinkle: the health insurance tax credits available through the law are keyed to relatively Spartan insurance plans, not as generous as most big employers provide. Send your workers into the insurance exchange, and valuable employees might jump to a competitor that still offers health care. http://www.huffingtonpost.com/2010/10/25/health-care-will-employer_n_773253.html Two things. 1. they won't pay employees more......thats a fantasy. 2. Tax deduction is a moot point since on the other side of the balance sheet health care costs as well as employee effeciency goes up since whole departments will be redundant because they aren't needed to process company insurance claims and keep insurance and employee records.
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