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Soon We Will All be on Obamacare

by Keith Koffler on May 31, 2014, 11:43 am

A new study by the research firm S&P IQ predicts the de facto death of employer-provided private health insurance, finding that 80 to 90 percent of it will disappear as Obamacare digs its fangs into the health care system.

The reason is simple economics. From the report by Fox News:

The companies will really be hard-pressed to justify why they would continue to spend the kind of money they spend by offering the insurance through corporate plans when there’s an alternative that’s subsidized by the government.

You see, as Obama likes to say, it’s math.

The tax penalty is $2,000 for not covering an employee. That’s far less than it costs to cover an employee. You can even give them money for deductibles and premiums that aren’t government-supported and still come out ahead. And then you can do your business instead of being in the insurance business.

And this, despite the promise you could keep your insurance, is by design. Because the Obama people, whatever their flaws, can also do math.

Ezekiel Emanuel, one of Obamacare’s chief architects, predicts less than 20 percent who now get employer provides insurance will still get it 10 years from now. Exults Zeke:

It’s going to actually be better for people. They’ll have more choice – most people who work for an employer and get their coverage through an employer do not have choice.

More choice, yes.

More choice of bad plans trying to meet government mandates. More choice of bad health care from doctors, hospitals and nurses getting squeezed by insurers desperately trying to stay in business. And more choice of taxes to pay to fund the whole scheme.

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Star May 31, 2014 at 11:55 am

When does Zekie go under the bus?

Star May 31, 2014 at 11:56 am

Didn’t they say employers could not hand people money and say go get your own without paying some big penalty? It sort of whipped on by–I didn’t get it.

srdem65 May 31, 2014 at 12:01 pm

Yes, methinks so too. WSJ piece? NYT, it is.

“The Internal Revenue Service ruled it will impose a tax penalty on employers of up to $36,500 per worker for dumping employees into the Obamacare exchanges. The New York Times, which broke the story, reports: When employers provide coverage, their contributions, averaging more than $5,000 a year per employee, are not counted as taxable income to workers. But the Internal Revenue Service said employers could not meet their obligations under the health care law by simply reimbursing employees for some or all of their premium costs. “

Julie Brueckheimer May 31, 2014 at 3:07 pm

I’m confused, but I don’t think it’s due to old age.

srdem65 May 31, 2014 at 11:57 am

Wait. Didn’t the IRS just issue a warning that if employers dump their workers onto Obamacare there is a huge fine ($@35K per person, per year)?

The way it is now; the employer paid portion of health insurance is a non-taxable earning for the worker. That’s how the whole shebang started back a century ago; a means to avoid government regulations against wage increases.
So, now, if an employer adds income by means of a raise, or helps pay for deductibles or premiums by means of a “donation”, it is now a taxable item for both employer and worker.
I’m no expert to be sure, so this is all IMHO.

MerryCarol May 31, 2014 at 12:41 pm

Chaos and confusion with a super-sized shake. Carry-out order by pen and phone. Just the way Obama likes it.

AFVet May 31, 2014 at 1:56 pm

Pelosi,…you have to pass it to see what’s in it.

Annie Fields May 31, 2014 at 12:16 pm

Except IRS just issued a rule to make it $200 PER DAY PER EMPLOYEE if you don’t provide insurance; meaning they REMOVED the option of providing subsidies to employees as an option. I don’t know if it’s a final rule or still up for comment but I read it this week.

Darkangel May 31, 2014 at 12:19 pm

Meaning businesses either lose money on insurance, OR lose money to the fines, ON TOP OF the highest corporate taxes in the developed world already.

This is supposed to HELP the economy?!

Star May 31, 2014 at 12:36 pm

Economy–that boring old thing? We have one quarter of neg growth–one more in a row and it’s an official recession–not that we can tell.

Darkangel May 31, 2014 at 1:06 pm

If there’s any silver lining, the announcement for the second down quarter would be three months from now.

“It’s officially a recession again” would be political gold for the GOP that close to the election.

AZ Granny May 31, 2014 at 1:59 pm

No way will that announcement happen. It will be a positive report only to be quietly revised later, without publicity.

Darkangel May 31, 2014 at 12:17 pm

And the GOP is backing off repeal, judging by some recent headlines I’ve seen.

We are watching the greatest nation in the history of mankind commit suicide before our very eyes.

AZ Granny May 31, 2014 at 2:01 pm

Well said!

AFVet May 31, 2014 at 2:02 pm

On Monday, the new regulations for power plants are going to be announced.
The electric bills are going to skyrocket, just like Obama said.

Lee May 31, 2014 at 2:05 pm

I have said before, everyone who is behind this is not thinking of their children’s future, grandchildren, etc.
If they would just take the time to sit down and do the basic math.

AFVet May 31, 2014 at 2:05 pm

It is not committing suicide, rather it is being strangled slowly.

Julie Brueckheimer May 31, 2014 at 3:09 pm

I read one of those articles and it’s says the GOP will go after Obamacare bit by bit, hitting the most damaging ones first. But yes, this is in place of going for wholesale repeal up front.

gracepmc May 31, 2014 at 6:02 pm

The GOP is worthless, absolutely worthless, in doing anything about Obamacare. So by extension I have no hope or expectation that they will collectively have the will to save this country.

The individual Congresspeople who still fight — yes. But not the body and not

Elaine May 31, 2014 at 12:52 pm

Logic and common sense aren’t qualities the Democrats encourage.

Of course the design of Obamacare was to incrementally get us to the obvious goal-complete government control over our health, and soon, every aspect of our lives.

It’s funny to read that Britain has a new head of their National Health System who is calling for less centralization and to move back to local community health care centers rather than big, bureaucratic-laden hospitals, sometimes far from one’s home, while the U.S. is heading towards the failures of Socialism, full speed ahead.

CiscoKid May 31, 2014 at 1:25 pm

” Iceberg dead ahead, iceberg dead ahead ”
” This is the Captain, maintain course and speed “

Lee May 31, 2014 at 2:08 pm

Just a moment ago I typed something regarding our children’s future. After I read your comment, I would like to add that they will all be speaking amoung each other, Why didn’t anyone stop this? Plain and simple.
Of course by that time, they will have to whisper such a conversation.

Stefan May 31, 2014 at 4:52 pm

Liberals don’t understand mathematics and economics. For them, it’s all about psychology and sociology – everyone should get a trophy and everything should be fair and everyone should just be able to do whatever makes them feel good.

I know it’s a broad generalization, but my years in college, I rarely met any liberals in my business classes. They of course were taking their classes over in the liberal arts buildings.

Stefan May 31, 2014 at 4:15 pm

Already saw my healthcare premiums go up 37% with my employer plan at the beginning of 2014 and deductibles were increased significantly too. Options decreased too. Co-workers are having problems getting some of their prescriptions filled. This is just the start of it.

veritaseequitas May 31, 2014 at 4:50 pm

Unless of course the GOP grows a pair and repeals ObamaCrap after the 2014 elections.