WASHINGTON, November 18, 2014 — Almost half of all Americans receive their health insurance because the head of the household is employed by a company that offers health insurance as part of the overall compensation package. Because the companies value the contribution of these employees, the health care plans are generally very comprehensive. While premiums have increased as a result of Obamacare mandates, most employees are generally happy, even considering the contribution they make toward the cost. But starting next year and continuing into the future, this arrangement is about to change dramatically
We know that the American public was greatly deceived from the start regarding the effects of the Affordable Care Act. Contrary to promises by the Obama administration, millions of Americans have had to change their long time family doctor, change the health insurance plan they freely chose and have seen their premiums rise. Now another deception is about to hit the most productive sector of the middle class.
There are roughly 147 million Americans who are employed and produce the output to satisfy the needs of the total population of about 320 million. Approximately half of these workers are employed by small to medium sized businesses. Starting in January the phase-in of the employers mandate begins. Originally required by law to start in 2014, this mandate was delayed by President Obama until after the 2014 mid-term elections probably because he knew of the negative impact.
The employer mandate will require all businesses with more than 50 employees to provide government approved health insurance plans to their employees or pay a fine of $2,000 to $3,000 per employee per year. Since the government approved plans often require more coverage than employers can afford or that employees want or need, the cost of these plans puts a huge burden on employers.
The likely result will be that companies will find it is cheaper to pay the fine than to pay for the expensive health care plans, so that productive employees will end up buying plans on the exchanges that carry high premiums, have high deductibles and limit the doctors that can be seen. According to recently discovered video from the architects of Obamacare, this deception may have been the intent of the law.
But it gets worse.
Beginning in 2018, any employer who offers a high quality health care plan will be required to pay a “Cadillac” tax. These employers are mostly larger companies who willfully offer very comprehensive health care plans to employees who generally are very productive and are loyal to the firm. This employees recognize that their hard work is rewarded when the company offers these comprehensive plans.
But the 40% excise tax on these plans will mean that the cost is too high to continue offering this coverage. Most likely the firms will have to offer poorer quality plans which require more out-of-pocket expenses for workers or they will discontinue the plans altogether, send their employees to the exchanges and perhaps offer some additional compensation to help the employee pay the cost. In the end productive loyal workers will have poorer quality health care and will have to pay more.
As the ACA is implemented the lies and deceptions become more evident. While supporters of the bill continue to remind us that 7 or 8 or 9 million Americans have benefited from the ACA because they now have insurance, hundreds of millions of Americans are paying more and receiving less.
Perhaps the biggest deception about the ACA is that we were told that the law is not a “take-over” of the health care system. However as each additional segment of the illegal delays are implemented, more Americans will be pushed off of plans that they are generally happy with, and put on a government controlled exchange. Eventually as most Americans, except perhaps for the wealthiest, are pushed off of private plans and onto government controlled exchanges, we end up with a single provider of health care services. This deception, which removes all competition, will be disastrous to the overall quality of health care. We hope the law is modified or repealed before this happens.