Thread: CBO: Obamacare Will Leave 30 Million Uninsured

Originally Posted by way2convey

Here's why. Say an employer has 51 employees and he is picking up 50% of their $600.00 per month HC premium. That's $15,300 per month, $183,00 per year not including the cost of HR administration. Under Obamataxcare, the fine he would face for dropping coverage is $2000 per employee. That's only $122,400 a year, saving him $60,600. Doesn't seem like a whole lot but to a small business, that can be huge. Now, if you consider co's with hundreds of employees you are talking considerable savings.

The employer wins big, the employee looses affordable insurance and now must get insurance through the "exchanges" or face a fine of his own. Great system, hu?

Again, you are not understanding the question. Why did your example employer not drop health coverage prior to now and save himself $183,000 plus the HR costs. Why would he see the savings of $60,600 and decide it was worth doing when it wasnt worth doing to save $183,000??

Originally Posted by hopeless_in_2012

I understand the concept but find it hard to understand the reality. Our insurance rates have been rising like crazy every year for a while now. Why all of a sudden when they have to pay a penalty would a business owner decide to drop coverage? It just doesnt make sense. Our company has already sat down and had management meetings on the subject, the upper management went into the meetings with the same idea of paying the penalty instead. After those meetings they came to the same conclusion, if they were not going to provide insurance coverages why would they just wait until they have a penalty to pay, why had they not just eliminated health insurance for employees long ago. The answer is that in order to obtain and keep quality employees they need to offer a quality benefits package, this will not be changed by Obamacare, they will still need to offer a quality benefit package to obtain and keep quality employees.

Why all of a sudden when they have to pay a penalty would a business owner decide to drop coverage?

I just told you.

When the insurance rates go up significantly the business owner will not be able to pay the higher rates and still make a profit.

Originally Posted by hopeless_in_2012

Again, you are not understanding the question. Why did your example employer not drop health coverage prior to now and save himself $183,000 plus the HR costs. Why would he see the savings of $60,600 and decide it was worth doing when it wasnt worth doing to save $183,000??

Resistance to change.

That is a natural human trait.

In many industries health insurance is expected by the employees and all other things being equal no company wants to make drastic changes to the status quo if it can help it.

But ObamaCare change everything and shuffles the deck in ways that liberals apparently can't see or don't want to see.

Originally Posted by Mac-7

I just told you.

When the insurance rates go up significantly the business owner will not be able to pay the higher rates and still make a profit.

Have the insurance rates not been going up significantly for years now? Why havent they dropped coverages before now and saved all that money instead of waiting and only saving that money minus the cost of the penalty all of a sudden? The argument lacks logic.

Originally Posted by hopeless_in_2012

Again, you are not understanding the question. Why did your example employer not drop health coverage prior to now and save himself $183,000 plus the HR costs. Why would he see the savings of $60,600 and decide it was worth doing when it wasnt worth doing to save $183,000??

As long as rates don't change, most employers will continue to provide insurance. If other requirements of the Obamacare bill cause rates to rise, then many employers will likely drop coverage.

So Obamacare was one big crap of a bill. It didn't do anything except raise the prices of healthcare for everyone while still leaving 30 million uninsured.

Obama the jackass magnificent.

Originally Posted by hiimjered

As long as rates don't change, most employers will continue to provide insurance. If other requirements of the Obamacare bill cause rates to rise, then many employers will likely drop coverage.

Insurance premiums have been rising every year significantly for some time now. Why all of a sudden will many employers choose to drop coverage? If Obamacare hadnt been enacted rates would have continued to rise dramatically, these employers would have been forced to drop coverage, so how is this the fault of Obamacare? If rising rates cause the dropped coverage, then the dropped coverage was coming with or without Obamacare.

Employers provide health insurance because they want healthy employees, they want to attract and keep quality employees. Do their incentives change all of a sudden?

Originally Posted by way2convey

Here's why. Say an employer has 51 employees and he is picking up 50% of their $600.00 per month HC premium. That's $15,300 per month, $183,00 per year not including the cost of HR administration. Under Obamataxcare, the fine he would face for dropping coverage is $2000 per employee. That's only $122,400 a year, saving him $60,600. Doesn't seem like a whole lot but to a small business, that can be huge. Now, if you consider co's with hundreds of employees you are talking considerable savings.

The employer wins big, the employee looses affordable insurance and now must get insurance through the "exchanges" or face a fine of his own. Great system, hu?

lol before obamacare he would have saved the entire 183k!!!

Originally Posted by Consmike

So Obamacare was one big crap of a bill. It didn't do anything except raise the prices of healthcare for everyone while still leaving 30 million uninsured.

Obama the jackass magnificent.

It also provides the opportunity for many uninsured to obtain coverage, it also allows parents to cover their children until 26 at their own cost, it also provides an opportunity for people with pre existing conditions to obtain coverage, it also gives conservatives something to complain about, it also cut the projected 2022 uninsured count in half, it also does not provide for illegal border hoppers, etc...

Obama is still a magnificent jackass though

Originally Posted by hopeless_in_2012

Have the insurance rates not been going up significantly for years now?

Why havent they dropped coverages before now and saved all that money instead of waiting and only saving that money minus the cost of the penalty all of a sudden? The argument lacks logic.

Not as much as under ObamaCare.

ObamaCare represents a landmark change in health insurance and healthcare for the nation and it has gotten more attention than a normal rate increase would have.