General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsCalling ACA experts: WTF? Will employees start losing their good insurance coverage?
By Sy Mukherjee on May 28, 2013 at 4:05 pm
In an effort to cut wasteful U.S. medical spending, certain employers will be scaling back expensive health plans available to their employees and encouraging workers to pursue more preventative and ongoing primary care. The move is being prompted by Obamacare provisions that encourage a more cost-sensitive and efficient approach to Americans health care than the status quo.
Recently-released government data shows that Americans medical bills are completely random, with some hospitals charging as much as $100,000 more for the same services performed at other facilities. In turn, that drives up the costs of many private health plans, and increases companies spending on employer-sponsored insurance.
Obamacare attempts to change this dynamic. Under the law, health plans that cost over $10,200 for an individual or $27,500 for a family will have to pay an excise tax of 40 percent on every dollar that they exceed that cutoff beginning in 2018. As Jonathan Gruber, an MIT economics professor who helped design the law, explained to the New York Times, the tax is meant to reorient the way that employers approach their workers health problems and their associated costs. Its focusing employers on cost control, not slashing, said Gruber.
Companies arent waiting until 2018 to shift their health care models. Some are increasing their use of high-deductible health plans (HDHPs) which charge workers low monthly premiums but high annual deductibles in an effort to raise employees awareness of how much their health care consumption costs.
http://thinkprogress.org/health/2013/05/28/2064441/employers-obamacare-cut-wasteful-spending/
9: What is a Cadillac Health Plan?
The PPACA imposes a 40 percent excise tax on Cadillac health insurance plans. This new tax will apply to health plans valued in excess of $10,200 for individuals and $27,500 for families. Those thresholds will grow annually by inflation plus 1 percent. The tax takes effect in 2018.
http://www.cpehr.com/affordable-care-act-obamacare-for-business
So does this mean employers will be PENALIZED for offering good insurance coverage as part of their benefits package?
Sammich Man
(2 posts)On top of paying a heavy premium for coverage, now you get taxed. IOW, if you have a great plan you get penalized for it.
Brilliant!!!!
upaloopa
(11,417 posts)different amounts for the same service. When I was a controller of a medical clinic I learned that it doesn't matter what the care giver charges. What matters is what the insurance companies reimburse the care giver for services. That is some percentage above or below Medicare.
I have my doubts about this piece.
leftstreet
(36,106 posts)It wasn't very clear
OnyxCollie
(9,958 posts)because of the rising costs of health care and the new health care law.
ACA, what a joke.
leftyohiolib
(5,917 posts)couldnt be that they are raising them in a last chance money grab. they tell you it's aca and you eat it up like gospel. did that letter come from fox news?
cbdo2007
(9,213 posts)SoCalDem
(103,856 posts)No longer will employers be able to tell employees..."Sorry Bob, we can't give you a raise in your paycheck because your healthcare costs us $45-bajillion a year" NOW employees will KNOW that they will NOT be paying more than $850 a month (for individuals), unless the company wants to pay an extra excise tax (do we think any will do that?)..
Perhaps BOB would prefer to get that extra $850 a month IN HIS PAYCHECK, ans seek insurance through the ACA....
and it would also be nice to know that if Bob gets sick of his boss & company, he can leave for another company if he has his own coverage...
This is the goal, folks... It HAS to be..
GET BOSSES OUT OF MAKING LIFE-DEATH MEDICAL DECISIONS FOR THEIR EMPLOYEES..
and also ..why does a boss need to know every detail about your (or your family's) health?
Bosses should be in charge of paying a fair wage for a task that needs doing. They should spend money on keeping the workplace friendly & safe..and on raises for employees , and they should butt out of employees' private business....like their medical care..
leftstreet
(36,106 posts)I think the goal should have been to switch from employment based healthcare to a single-payer national plan
SoCalDem
(103,856 posts)It will be painful for a while, but getting rid of the middleman is never easy..
leftstreet
(36,106 posts)They can't blame the GOP
Safetykitten
(5,162 posts)BlueCheese
(2,522 posts)You paid almost nothing out of pocket for in-network care-- no deductible, no copayments, etc. I don't know if it was considered a Cadillac plan, as I don't know what the premium was.
They did, in fact, switch it over to a HDHP a few years ago, though it was still generous at first, in that they paid an amount close to the deductible into each employee's HSA.
I'm not sure it had to do with the ACA-- after all, this provision doesn't kick in until 2018. It could simply be that they couldn't afford to be as generous, or perhaps, realized they didn't have to be so generous to attract workers.
leftstreet
(36,106 posts)No doubt
FarCenter
(19,429 posts)People make a good living as consultants to HR, accounting, and legal departments on this topic.
Safetykitten
(5,162 posts)leftstreet
(36,106 posts)Puzzledtraveller
(5,937 posts)Businesses now have a year to dump people.
Safetykitten
(5,162 posts)leftstreet
(36,106 posts)Huh
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