So what's to stop employers from dropping their private health insurance coverage?

[rollingrock]

and simply tell their workers to buy into the public option? not that that would be a bad thing, of course.

from a business standpoint, it certainly seems to make good business sense to do that. it would probably be a win-win both employer and employee. the company saves money, workers save money from not having to buy overpriced private insurance. the only loser is the insurance company.

It seems to me this would be a huge incentive for every employer in the country (or at least the ones with <500k payroll) to drop their private plans altogether.

[The Velveteen Ocelot]

1. As I understand it, most employers will be required to offer it.

[jtrockville]

4. Would their fine offset our cost to buy into the public option?

If so, I'd lobby my employer to drop us like a hot potato. Even if not, I may still prefer to pay the full cost of the public option.

[rollingrock]

8. I don't think so

I thought I heard Obama say specifically in the speech only employers with payrolls over 500k are required to offer insurance. I'm not sure what % of businesses fit into that category.

[iris27]

2. Only small businesses (however the bill defines 'small') would be able to do that;

the rest face penalties and fines if they don't offer coverage. So the incentive is really on them to offer crappy, catastrophic plans that their employees then have to accept and won't be able to choose the public option.

[gtar100]

9. Exactly why "health" care for profit just won't work.

[texastoast]

3. I'm guessing

that they won't be able to attract the best and brightest employees which will help their companies become more profitable. BUT the public option will enable a lot of small companies get started and hire more folks.

[MadMaddie]

6. I think you have hit an important point

Small companies will be able to compete because they won't have the overhead of health insurance to sink their $$$ in. I think they want to but it's not feasable.

[tridim]

5. If the employers threaten to drop it the insurance companies will be forced to compete.

That's the whole point.

[rollingrock]

11. But on the flip side

the insurance companies can jack up their rates on the larger companies who are mandated to provide private insurance.

[rollingrock]

12. I guess the real question is

what percentage of companies fall into the category of 'over 500k payroll?'

(or less than 500k payroll)

[Uzybone]

7. The RW figured that out a long time ago

thats one of the reasons they've been fighting the PO tooth and nail.

[valerief]

10. That's what we're hoping will someday happen. nt

[NNN0LHI]

13. One word. Profits

I think most companies actually make money off their employee health care plans.

Don

[recoveringrepublican]

14. What stops them now? I'm honestly asking, not trying to be a smart ass. nt

[rollingrock]

15. Right now there's no public option yet

so the incentive for them to do so does not yet exist.

[recoveringrepublican]

16. That doesn't answer my question though. Why do some companies offer insurance in the first place?

My answer would be to attract better employees for favorable public opinion. How would offering up a PO stop this?

I always seem to have a bad tone so I'm just stating for the record. I want universal health CARE, this whole thing is pissing me off. But I'm trying to wade through this all and understand it.

[rollingrock]

17. I guess it would depend

on the quality of the public option plan.

Obama didn't offer much details in the speech, unfortunately.

One would assume the PO plan would be more attractive to most people, (it cost less, small overhead, non-profit, no exclusions, low deductible or no deductible, doesn't kick you off for stupid reasons, etc(.