From a California Business owner....

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From a California Business owner....

Postby Indaswamp » Fri Nov 22, 2013 1:49 pm

Dear Mish

My company, based in California, employs 600. We used to insure about 250 of our employees. The rest opted out. The company paid 50% of their premiums for about $750,000/yr.

Under Obamacare, no one can opt out without penalty, and the rates are double or triple, depending upon the plan. Our 750k insurance for 250 employees is going to $2 million per year for 600 employees.

By mandate, we have to pay 91.5% of the premium or more up from the 50% we used to pay.

Our employees share of the premium goes from $7/week for the cheapest plan to $30/week. 95% of my employees were on that plan. Remember, we used to pay 50% now we pay 91.5% and the premiums still go up that much!!

The cheapest plan now has a deductible of $6350! Before it was $150. Employees making $9 to $10/hr, have to pay $30/wk and have a $6350 deductible!

They can't afford that to be sure. Obamacare will kill their propensity to seek medical care. More money for less care? How does that help them?

Here is the craziest part. Employees who qualify for mediCAL (the California version of Medicare), which is most of my employees, will automatically be enrolled in the Federal SNAP program. They cannot opt out. They cannot decline. They will be automatically enrolled in the Federal food stamp program based upon their level of Obamacare qualification. Remember, these people work full time, living in a small town in California. They are not seeking assistance. It all seems like a joke. How can this be the new system?

Pelosi, pass the bill to find out what's in it? Surprise! You've annihilated the working class.

California Business Owner

http://globaleconomicanalysis.blogspot.com/
To say that Obamacare is misguided delusion is an understatement!
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Re: From a California Business owner....

Postby whistlingwings » Fri Nov 22, 2013 2:14 pm

I see you continuously post crazy rants on this forum all day, particularly on topics you don't know much about.

1.) This is very likely a letter from someone who doesn't actually own a business with 600 employees. Even if it is...
2.) More than 50% of their employees opted out of their previous company coverage, because the company only covered 50% of the costs. 50% is piss poor terrible for any business with 600 full time employees. In fact I do not know any companies this large that cover less than 75%.
3.) If they take the Obamacare penalty they will be paying $1.2 million a year.
4.) $1.2 million a year is about what they should have been paying if they had been offering their 600 full time employees semi-decent coverage beforehand (again, 50% is horrible for any company with 600 employees).
5.) Corporate rates are not doubling or tripling, anywhere.

There are many legitimate criticisms of Obamacare, but this "example" from a "business owner" is not one of them.
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Re: From a California Business owner....

Postby SpinnerMan » Fri Nov 22, 2013 2:31 pm

I agree that these unnamed complaints are very suspicious, but assuming it is legit.

whistlingwings wrote:2.) More than 50% of their employees opted out of their previous company coverage, because the company only covered 50% of the costs. 50% is piss poor terrible for any business with 600 full time employees. In fact I do not know any companies this large that cover less than 75%.
Are they part time and/or seasonal employees? You are making a lot of assumptions about this business.

whistlingwings wrote:3.) If they take the Obamacare penalty they will be paying $1.2 million a year.
Not if they are part-time employees which would explain both the 50% contribution and the large fraction that decline because they are not the primary bread winner and they get insured through their spouse.

whistlingwings wrote:5.) Corporate rates are not doubling or tripling, anywhere.

Did it say anywhere they were a corporation? If they are offering the same basic coverage that most people buy for themselves, it would do just that.

I'm skeptical, but I see nothing that says these are 600 full time employees. If they are nearly all part time and/or seasonal, the story seems reasonable.

Like nearly all do-gooder liberal policies, they hit those they intend to help the hardest. If this is real and a bunch of low paid part time employees, this is a likely outcome. Do the penalties apply to businesses with part-timers? That's the one thing I do not know.
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Re: From a California Business owner....

Postby Indaswamp » Fri Nov 22, 2013 3:23 pm

In a followup email, I asked what would happen if he dropped coverage altogether. Here is his reply ...

Our calculus suggests that the penalties could be worse because it is per employee per year. There are different kinds of penalties too. One for not offering a qualifying plan and one for when an employee signs up for an exchange in the absence of a plan at work. However, more importantly than the money is the unions.

If I drop my health plan, we would be exposed to union maneuvering.

As Steve Miller said, "clowns to the left and jokers to the right"


You obviously are not taking all the penalties into account ww.
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