Real World Affect of Healthcare Bill on Unemployement

This just in!

Corporations tried to kill healthcare reform and will not like anything about it.

Well….duh….

 

Wow, you are the definition of a smart man being dumber than a wise fool.

I don't really understand this ivory-tower jargon of yours about alignment of interests and value creation and whatnot, I just know what it takes to be a small business owner, with customers, and actual profits and actual losses.

Furthermore, I don't have tiime to try to decipher. My young friend, I have bills to pay.

You could use a visit from mister Munger, Charles. Maybe he would teach you the value of hard work, which you have yet to learn. Sad.

 

At an HR meeting in my company, the current plan doesn't allow for an increase in the cost of insurance over time for any plan considered a "Cadillac plan". If the current cost of medical care keeps increasing at the current rate, more and more regular company provided insurance programs will be considered "Cadillac" due to the price not being adjusted for inflation in the law.

In five years, at current rates, our company provided insurance benefits will fall into this category if no modification is passed. This will hit the insurers with a 40% premium. A cost which will either result in the costs being passed down to the corporation, or the employees. It may even result in a lot of coverages flat out being dropped.


It is most likely an oversight since for some reason Congress always fails to adjust for inflation in tax laws, but it is possibly a stealth tax that is going to sneak up on more and more middle class people over time. Just like the AMT.

 

I'm not sure the no-inflation part is accurate - though if so, it's certainly something that needs to be changed. According to this, it's inflation+1%, though that is still slower than health care costs have been rising (but hopefully this bill slows that).

http://www.csmonitor.com/Business/T...bill-summary-powerful-tax-bombs-delayed-fuses


The “Cadillac” tax on high-cost health insurance is the fave of nearly every economist, although it is widely disliked by the public. The current system that excludes the value of health care from tax is unfair since it is far more beneficial to high-earners (whose after-tax cost of insurance is reduced by 35 percent) than to low-wage workers (whose cost may be reduced by only 10 percent). It is also a big reason why consumers of health care are so disconnected from the true cost. After all, who cares about getting that unnecessary MRI if insurance is paying anyway?

Taxing those high cost health plans would encourage employers to offer cheaper policies, and workers could expect to get at least some of the cost savings back in wages, though economists argue endlessly about how much.

The final House-Senate compromise would change that--eventually. Health coverage in excess of $10,200 for individual plans and $27,500 for family plans would be hit with a 40 percent excise tax. Keep in mind the tax is only on the amount in excess of the floor, so with an $11,000 individual plan, only $800 would be taxed (the 40 percent rate would yield the government $320).

There are all sorts of exceptions. And the tax is indexed for inflation plus 1 percent.[/b[ Today, the average family policy costs less than $14,000, far below the threshold. But since health costs have been growing much faster than regular inflation+1, the new tax would eventually hit many more workers—unless we can control medical costs. This tax is potentially a health care game changer. But it won’t take effect for 8 years.

Will any of us ever pay either tax? Who knows? The odds are very high that Congress will enact a significant tax reform long before anyone ever pays the Cadillac tax. And unions are poised to kill it. Similarly, the Medicare tax will be hugely controversial. Plus it eliminates a major revenue option for those who want to find new taxes to help balance the budget.

In the end, I’m betting that nobody will pay these taxes in quite the way the new law requires. It will be fun, however, to see how they change.

 

Juan are you really after all of the dot com and telecom CEO's who have touted their own stocks while dumping them, after Goldman selling crap they had designed to fail, after Enron still so naive?

 

Reminds me of a fairly high level executive I spent an evening with from the broadband division of Enron. He said there was a gasp from the assembles broad band division when at a public meeting Lay and Skilling and gang said how good the broadband division was doing when those there knew itheir profits were largely smoke and mirrors.

 

This whole thread shows the complete fallacy of tying health insurance to employment at all.

 

That is why Obama care is there for, for unemployed without insurance and part time workers who are not qualified to be insured. If I can choose between either aetna or obamacare i will drop aetna high premium in a second.

 

DING! We have a winner. Public option FTW!

 

Wow..a glynch post I agree 100% with....its not just a fallacy, its a complete joke of a system. I'm not a fan of this plan as a small business owner, but I'm hoping it pushes us towards single payer and gets me out of the healthcare business and back into my business.

 

I help people everyday acquire Healthcare through the new Bill's Pre-Existing Condition Plan that is already in place. These are individuals who are now, after being legally denied any type of coverage for years, have a chance to live. To actually LIVE.

Sorry about your job.


http://www.healthcare.gov/law/provisions/preexisting/index.html

 

Good post. Someone who gets it and has actual experience in the health care area-- not just GOP, libertarians and the Fox News besotted that theorize or believe bs.

Though not that great of a bill this part of the law will actually save lives, not to mention allowing millions to get pain medicines and psych drugs that will alleviate their minute by minute horrible suffering.

 

Which will lead to people living longer and healthier lives
See Obama has cause overpopulation now . ..
Resources that could be going to golf courses and growing truffles
will now have to be used for bull**** like staples.
. . . fricking poor folx just draining the system . .. living and everything .

Rocket River

 

I know somebody who didn't read "The Big Short."

 

Yeah, everybody has the money to pay for an $80k back surgery, or hundreds of dollars per month in insurance premiums, a lot of additional co-pays and prescription meds, no matter how expensive. A few novelties cost this much.

Signed,

A conservative who doesn't get out much and has bought the kool aid from billionaires who like low taxes

 

I agree that we need to erode this hazard. If only people were now required to buy health insurance if financially able to do so, instead of waiting until they get sick and it's too late.

 

ultimately cost is the problem but not because of government involvement. the government has been involved for over 60 years, the cost problem is more recent.