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About one in 10 employers plan to drop health coverage when key provisions of the new health care law kick in less than two years from now, according to a survey to be released Tuesday by the consulting company Deloitte.
Nine percent of companies said they expect to stop offering coverage to their workers in the next one to three years, the Wall Street Journal reported. Around 81 percent said they would continue providing benefits and 10 percent said they weren't sure.
The companies, though, said a lot will depend on how future provisions of the law unfold, since most of the key parts are scheduled to take effect in 2014. One in three respondents said they could stop offering coverage if the law requires them to provide more generous benefits than they do now, if a tax on high-cost plans takes effect in 2018 as scheduled or if they decide it would be cheaper for them to pay the penalty for not providing insurance....
Originally posted by xuenchen
This whole thing could easily lead to lower real-time wages across the board for the average worker.
Not to even consider the massive taxpayer funding necessary to pay for the lower wage earners.
Why would employers dropping health care support, somehow magically lower employee wages?
Could the reason they could drop health care support is because Obama Care is in place and taking care of the workers health needs... Americans health needs?
Why would employers dropping health care support, somehow magically lower employee wages?
Originally posted by DaRAGE
Honestly I look at an American business and think "why the hell are they providing health care to their employees? Shouldn't that be left up to the employee to find for and pay for their own health care?"
Then I think "Health care in America seems to be quite expensive. That must be a huge expense to American businesses."
Originally posted by xuenchen
reply to post by DaRAGE
Why would employers dropping health care support, somehow magically lower employee wages?
Simple math.
By forcing employees into a system that won't necessarily guarantee a low insurance payment.
The employers will continue to use "market price" to determine wages.
Much easier for them with the insurance payment problem out of the way.
Worker #1 now makes $15/hour with insurance.
Employer drops the insurance payment and keeps the wage at $15/hour.
Worker #1 now has to pay the insurance alone.
That = a wage decrease.
Originally posted by spyder550
I am sure that wages will increase if the employer drops coverage because the capitalist system is fair and equitable that way.
Originally posted by DaRAGE
Why would employers dropping health care support, somehow magically lower employee wages?
Originally posted by jtma508
Interesting. Yet if you actually look into the matter (I know, I know why would ANYBODY actually research something so simple, right?) you'll see that this is nothing unusual and tying it to ObamaCare is somewhat disingenuous. Administering benefits programs cost big money and in my working lifetime (I'm 60) I've seen the level employer contributions drop precipitously. For you youngins out there, it was typical and expected for employers to pay 100% of healthcare when I entered the workforce. Times change.
But if you look at this (go to page 30) you'll see that during the Bush presidency employer-offered health benefits dropped 9% (from 68% to 59%). Not attempting to bash Bush or defend Obama --- two peas in the same pod to me --- just pointing out that things (as usual) are a bit more convoluted than the political rancor would have you believe.
Originally posted by MikeNice81
That would lead to increased incentive to fire or lay off current employees. If the new employee never had health insurance with the company they wouldn"t recieve the extra money. So, it would be cheaper to lay off and rehire.