The more that comes out the worse and worse this looks. $$$$$$$$$$. Our current healthcare system was not broken just flawed and could have been addressed several other ways then this which ultimaly will mean higher taxes for all.
"The ACA will require employers to extend health coverage to more part-time employees..."
So, not only is the corporate tax rate not being dropped by a noticeable and meaningful percentage, but now businesses both large & small are going to have MORE money coming out of our pockets to insure part-timers...
I understand the need to insure the uninsured. You won't get an argument out of me on that.
But at what cost?
This landmark legislation (ie: ACA, Obamacare) will get the uninsured, insured, yes... but in the same breath, it's going to put a lot of people out of work.
The first thing employers will do, is let their part-timers go, and put the work-load on the full-timers.
That's what WE'RE going to do (here at the office).
They were in such a rush to push this on the American people, that they failed to look at the ramifications.
Good article Mike.
But, everyone will have insurance not matter what it costs them.... oh joy.
The first thing employers will do, is let their part-timers go"
Part timers dont get medical insurance so really it wont save them much - full time workers will be more at risk because they can be replaced with cheaper part time employees that do not require benefits and would be much cheaper therefore by the hour.
Why not hire two part timers that cost $8 an hour each at $16 rather than one person who makes $60 with their salary and benefits? I dont even know what my benefits cost the company but I make $$$ an hour without any benefits added....please dont tell me they can't replace me easily (that does not include my profit sharing or 401k match either) and I am not even an Executive, I'm only an Executive Assistant. $60 an hour is looking pretty low ball right now.
On Monday -- the same morning the AAF released its survey -- Health and Human Services Secretary Kathleen Sebelius said the government must reach out to young people currently uninsured who may not know they can gain federal assistance to buy coverage through a health insurance exchange or marketplace. Young people are particularly tough to reach, she noted.
Is this assistance the "federal tax credits available for those making between 100% and 400% of the federal poverty level" ?
Most full time jobs people will not work part time to perform those duties. Most full time jobs require someone to be there 5 days a week to keep working on things not only 20 hrs and let someone else pick up the other 20 hrs.
So hiring part time is not a answer for a company. Of the 2 jobs I have worked since I have been out of school you could not hire 2 people part time to do the work. You need training and experience.
The article above, specifically says... ""The ACA will require employers to extend health coverage to more part-time employees..."
The whole point is, employers are going to be FORCED (required) to extend a benefit package to part-time employees.
We hire part-time people, and have them work JUST SHY of a full 40 hours, so that we DON'T have to offer benefits. Now that we'll be forced to offer the part-time people benefits, we just won't hire part-time folks anymore, and the existing part-time people, we'll just fire them and dump their work-load onto the full-time employees that are already on the payroll.
Whoever thought up ACA, didn't think it all the way through. There will be massive repercussions, for forcing employers to offer benefits to part-time employees. Massive.
I think the days of part-time employment, where you could just go and get a job working 20hrs a week, is about to undergo an overhaul.
We talked about this very subject in a managers meeting this morning, and it was decided that we're not going to be hiring anymore part-time people, and that our existing part-time employees, would be phased out of existence.
Oh well... sorry part-timers.
So the tax credits the Government offer you will not make it possible to offer care to your p/t workers?
My son will be facing the same problem in NYC. He says it may be cheaper just to pay the fines as they will go bankrupt if they must pay the heath insurance for their p/t workers.
He is no fat cat, just a hard-working guy with a team he loves...
Well, we will see how all this unfolds, maybe the tax credits will make it possible.
Back in the dark ages my Mother had a medical problem that necessitated an annual procedure that was extremely painful and had severe side effects. I was about 22 years old at the time and my Father told me there was a new machine available - there was only one in the country - and that it would eliminate the need for that brutal procedure my Mother had to get yearly. I was younger and dumber then and this was before the time when insurance paid for everything. Anyway, my Dad told me they had an appointment scheduled for my Mom and I asked him how much it was going to cost. He said $25,000. I said "Man, that's expensive." and he said "Mike, that's the only GD thing money's good for." I know now a lot better than I did back then how true those words of his were. I suspect that anyone whose dealt with a serious health problem knows that too. When you get really sick your health is the only thing money's good for and I believe that everyone should have access to the medical care they need...even if it is expensive. We can find the money if we aren't too greedy to try.
"We can find the money if we aren't too greedy to try..."
We're looking at laying off 1/3 of our work-force (the part-time folks) because the gov't is forcing us to give healthcare benefits to all of them. That's going to cost us an additional 12% off our bottom line. A bottom line which is only 27% to begin with. We're not greedy, but we DO enjoy putting a few dollars in the bank at the end of the year. Unless of course, you think that defines "greedy"? Any money "left over" after all their expenses/overhead is paid, used to be called "profit". I guess it's now called "greed".
Rivll: I'm like your son... hard working, and by no means a 'fat cat'. But at the end of the day, I have to look out for the health of my COMPANY. We're in business to make money, not to provide healthcare to our part-time workers (contrary to the popular belief of some). The tax-credit(s) we receive from the gov't, aren't enough to offset what we'll be paying OUT in health benefits.
FORCING us to provide healthcare to part-time workers, is going to cost those workers their jobs.
Again... sorry part-timers.
I find this heartbreaking. It is not rhetoric when my son says they will have to shut down. His team loves him. They come from other jobs so delighted to eat for free and to have a compassionate and accommodating boss, who pays them a few dollars more than minimum wage because he knows for some they are supporting families and have night shifts elsewhere.
The workers deserve health care, I just hope that the Government tax credits will be enough to make it possible for them to stay open and run the business.
Mike: Your Dad was spot on. The apple didn't fall far from that tree.
Thanks for sharing that story.
Single payor option is on the horizon. Universal healthcare is the answer.
suspect that anyone whose dealt with a serious health problem knows that too. When you get really sick your health is the only thing money's good for and I believe that everyone should have access to the medical care they need...even if it is expensive. We can find the money if we aren't too greedy to try. "
AMEN AND AMEN AND AMEN!
Weve got health insurance. Good health insurance. Blue Cross/Blue Shield. The whole family went to the eye doctor yesterday. All had exams and each exam was $10. Yeah, $10 bucks!!! Pretty awesome.... glasses for the whole outfit excluding me, even with good insurance is going to cost $700.
So much for that good insurance. Who knows what it would have cost if I was going to get glasses....
Brice, you forget to include your premiums you pay on a regular basis. Add that into the mix. We actually pay a large amount each month in premiums. Do so willingly though as I am not in favor of a universal healthcare system.
I can't even imagine if our govt. ran all healthcare in this country.
"...I can't even imagine if our govt. ran all healthcare in this country...."
It would force those of us with real health problems, to seek private health insurance, at additional cost to ourselves.
Take Canada & the UK for instance... I have relatives in both countries, that carry their own, private, insurance (additional cost), because the "state run" healthcare is inadequate for their particular needs.
I, for instance, couldn't survive in a "universal healthcare" type of system. There's too much waiting around. If I get a kidney-stone, I need it taken care of IMMEDIATELY. My uncle (in the UK) got a kidney-stone. He went to the hospital and they stuck him in a hospital room, put him on painkillers, and he waited 4 days, before they finally got him in to remove it.
I'm sorry... I can't just sit around for 4 days, waiting on gov't red-tape, before I go in for surgery.
The way it is now, is I arrive at the hospital, they stabilize me, and I get the next available surgical slot. If there aren't any, my doctor creates one, and does the necessary procedure.
Universal Healthcare is asinine.
I still see this as the "haves and have nots". If you have money, you'll pay dearly... if you have little money.... don't sweat it. Everyone else is paying.
brice that is downright offensive. I dont have health insurance and due to pre existing cannot get it for any amount of money. I would gladly pay premiums instead of everytime I get sick, realizing I cannot go to a doctor because most will not see someone without insurance coverage. Even the hospitals now altho they must see and treat someone, just stablize you and unless you are on your deathbed, the doctor on call has the right to refuse to treat you. In my case money has nothing to do with not getting coverage. That narrow view of things from a limited perspective is what is wrong with this country.
And I will only add that altho you may pay premiums, lets remember you get that cost because you belong to a pool of people making it possible for you to get that rate, and when you go to the doctor there is an agreement between your insurance company and the provider of that cost of service. That deduction if you will. When you are private pay and go for that same treatment, you dont get discounts, you get the full amount billed to you. So there are always two sides of the same coin.
One of the only ways to not have health insurance due to a pre-existing condition, is if one has a "lapse in coverage".
I hate to say this, but if one has a medical condition, it's ONES personal responsibility to make sure one has continuous-coverage, so that there are no "gaps". If one has no "gaps" (ie: lapses in coverage), there's no 'pre-existing medical condition' issues.
Even when I've been in between jobs, I've MADE SURE that I cover my healthcare with COBRA (continuation from my previous employment healthcare). Yes, it's expensive as hell, and I was broke while paying for COBRA, but it was MY responsibility to cover my healthcare.
And when my COBRA ran out (due to not being able to find a job within 13 months), I got myself covered by an EXTREMELY expensive private insurance, JUST so that I'd have minimal healthcare coverage, so that there'd be no "gap" (lapse in coverage).
Health insurance is ones own personal responsibility.
And for the homeless people that have no money and have a severe medical condition... No job. No money. Pay no taxes. Do not contribute to society in any way shape or form. My apologies. I don't want to, nor should I be forced, to cover YOUR healthcare needs.
Call me heartless...
Again, you show your lack of knowledge. We lost our employer sponsered insurance when the recession hit, and we tried to continue it on our own. Again we were told no, we were high risk. I am self employed which makes it even harder. The only way for us to get insurance is to take a job of somekind that offers employer paid insurance where we are once again in a pool. And I may eventually have to quit my own self employment and go to work for Costco or someone that carries it and take the hit on income. Some of us do not survive off your taxpayer ***. In fact I pay more out of pocket for taxes than you do, so? Of course if I quit my self employed position and my husband does too, we still would not be eligible to live off the teet because we have no children. Again, the lack of knowledge is astounding. And even if we did get a job that carried insurance it used to be any pre existing didnt get covered for the first year, altho under obamacare I do think that has changed. So you see, your not paying for anything for someone like me. Im not on welfare, medicaid or any other government program and pay more out in taxes than you do.
Didn't mean anything offensive, in anything I wrote, and I hope you weren't offended by my words.
I stand corrected, on my original comment to you about the "lapse in coverage" pre-existing conditions, thing.
I didn't say that lapse in coverage was the only way... I said it's "ONE of the only ways".
"...In fact I pay more out of pocket for taxes than you do..."
Is that a FACT? It's curious that you know exactly how much $$$ I pay in taxes. I'll have to talk to my accountant. I guess her security isn't tight enough, and my information is leaking out onto the interwebs! You must be a pretty good hacker!!!
"...And even if we did get a job that carried insurance it used to be any pre existing didn't get covered for the first year..."
If you walk into a new job, not having had healthcare coverage, yes... there's a 1-year waiting period for pre-existing conditions. If you walk into a new job, having NO lapse-in-coverage (you were carrying private insurance, or had COBRA, right up to the point of new employment), there's a 30-day waiting period, for ALL coverage, pre-existing or not (then you're covered 100%). I'm not sure what the Obamacare rules will be, but if pre-existing conditions are covered immediately (with NO 1-year waiting period), then that's a good thing.
Obamacare isn't 100% bad. There's some good stuff in there. SOME. It's all the extra stuff that bothers me, and puts my back up. Requiring employers to offer part-time employees healthcare, is just one thing that should be removed. It'll cost jobs, which in case no ones noticed, are kind of in short supply right now!
My condolences for your lack of health insurance coverage, teko. I don't wish that on anyone, especially someone that I know. The downturn in 2007-2008 hit some harder than others, and it looks like your healthcare coverage was one of the casualties. I'm not sure that "condolences" was the right word, but I both sympathize AND empathize with your situation. Been there, done that, and with MY condition, it was hell, going to a "free" hospital (Ben Taub Hospital, here in Houston, is our local ghetto-hospital... not a fun place to be, especially when you have a kidney-stone).