My CEO is discussing dropping healthcare FOR Obamacare

[titaniumsalute]

He is waiting to see the rates in our home state, but as of now here's what he is thinking. We are a company with about 50 employees. The rates for healthcare keep skyrocketing. Right now I pay about $250 per month out of pocket and the company is paying about $750 per month for a family plan. Our insurance is mediocre at best.

He's looking at it this way. If our company could drop health insurance for the buy-in to the health companies participating in the Affordable Care Act he's likely to just pay us cash directly if we can get a better deal. For example, If a family of 4 could be covered for $650 per month I would pay $200 per month ($50 less than I pay now) and my CEO would pay us $450 in cash monthly to offset the premiums.

Since that money would be taxed I would be paying about the same amount but it would save the company $300 per month average per employee times 50. That's $15,000 per year cash in savings for a relatively small company.

It takes the burden off of the company completely.

[Yo_Mama]

1. Yes, but it would shift part of the burden to the taxpayers

Because of the subsidies. But many companies may do this - if it is better for their employees, why not?

Part of the CBO calculation as to what ACA will "cost" includes higher taxes from arrangements such as those you are explaining. If the company gets large enough, then the cost of the ACA fines will offset the savings to the company, and the employees won't get as much out of it.

[dumbcat]

4. Yes, but single payer would shift the entire burden to the taxpayers.

Isn't that the goal? Am I missing something?

[Yo_Mama]

7. We'd pay taxes for single-payer, of course

But most countries with public insurance schemes seem to be able to do it a lot more efficiently than the US. We already hugely fund health care in the US through Medicaid, Medicare and stuff like CHIP, so the real question is whether the taxpayer's dollars are being spent efficiently.

One way or another, we are going to pay for health care. No one really wants a system in which an abscessed tooth kills a poor person! I do think that most would prefer that we go for a system with as little waste as possible.

As for single-payer systems, most are funded at least with substantial contributions from employers. I don't want to wander into a US system where employers are completely able to avoid that obligation, to be honest. I think it sets up perverse economic incentives.

[Thinkingabout]

2. A close friend works for a small company and through PAYCHEX they was offered a group plan

of health, life, dental and disability insurance for $104 a month. If you company used the payroll system offered by PAYCHEX or similar group which would be able to have enough people to qualify for group discounts, then this would not be a problem. In fact in your case your contribution would be lower. Small companies would benefit by having their employees having health care. If the CEO's continue to listen the the against Obamacare for their information then they will be denying the true facts.

[Freddie]

6. I wonder how good that plan is though

My son worked for a major retail chain (not Walmart) a few years ago and was given the opportunity to buy cheap "health insurance" which covered almost nothing. Such plans will no longer be allowed starting next year but some places have gotten waivers to continue to offer them (I believe temporarily) instead of real insurance.

[Thinkingabout]

13. The medical is Blue Cross Blue Shield and so far he is happy. The price is based on group

Pricing because of the size of insured. Insuring many is one factor in cutting the cost to individuals. In fact when this group was given the offer they accepted in greater numbers than anticipated so the original cost dropped.

[on point]

3. Time for single payer and to eliminate the tie with companies completely

[titaniumsalute]

5. AGREED!! N/T

[Freddie]

8. 100% correct

It should be financed by an extension of the Medicare tax which is a flat tax with an employer match, no cap. It's 1.45% now, maybe raise it to 7%? The tax increase would still be less than most of us pay as our share of employer provided insurance (far less if you have to buy your own!) and the employer match would be way less than most employers pay in premiums. As for those employers who pay nothing now, oh well. Everyone who gets a paycheck would have "skin in the game." Of course, being a flat tax, the very highly paid would end up paying more than they do now in premium or co-pay; my heart bleeds.

[AAO]

9. Cali costs are going way down

http://www.medicaldaily.com/articles/15916/20130526/health-insurance-healthcare-california-obamacare-affordable-care-act.htm

[Corruption Inc]

10. For-profit: profits matter, lives don't

Our healthcare system is corrupt, as are the politicians who are paid to keep it corrupt. Nothing changes until corruption is addressed.

[AngryAmish]

11. Of course Obamacare will be superior than anything a company could buy

It looks like you have a wise CEO. You should thank him.

[Lex]

12. I like the idea of health insurance NOT being tied to a specific job

I have. That means if a person were to lose their job, their health insurance isn't suddenly gone too.