Skip to comments.Proposed Health Insurance Fine Puts Small Businesses In A Fix
Posted on 08/06/2009 6:10:04 PM PDT by Kaslin
News Analysis by IBD
Like just about every other sector of the economy, small business has been trying to get a fix on a moving target: the Democratic Congress' notion of how to pay for the health insurance it wants all Americans to have.
The House version would require any employer with a payroll of at least $500,000 a year to provide health insurance or pay a penalty.
The penalty would start at 2% of payroll and increase with payroll size. The maximum penalty would be 8% of payroll for firms whose annual outlay for wages and salaries is $750,000 or more.
Experts say even that maximum penalty of 8% of payroll could be such a good deal for employers that they'd rather pay it than buy health insurance for their workers. That would put those workers into a government-run plan.
In fact, paying the penalty will be far cheaper than buying coverage, according to data compiled by Sageworks, a data analysis firm focused on small business.
As a percentage of profits, the penalty would cost most small businesses half what they'd pay for health insurance premiums, Sageworks found.
For companies not yet offering employee health benefits, the penalty would be the likely choice over insurance premiums, says Brian Hamilton, Sageworks' CEO.
(Excerpt) Read more at ibdeditorials.com ...
What’s the betting this is to gut private insurance and switch all employees to the govt. plan, and then the fine will go up to 15% or more.
Does anyone remember Hillary’s smarmy ‘93 comment that, “We can’t be responsible for every undercapitalized business in the country.”?
As though there’s some inhernent responsiblity for small business to offer healthcare.
THIS is the message to deliver to the liberals!
There in NO Responsiblity for you and I to subsidize those insufficiently motivated to fend for themselves!
There is NOTHING in the current legislation to limit assistance to those truly in need!
Is it just me or has IBD been a little slow in the uptake?
I used to rely on them for reality checks in the economic front, but something is seriously not right with them in the last year or so — inconsistent at best.
‘Proposed Health Insurance Fine Puts Small Businesses In A Fix’ — Yah think?
For the last 6 months the countries free market has been under assault from leftist statism like never before. Push back on IBD’s part has been half-hearted at best. WSJ is the same.
Guess 2 decades of Keynesian (Connecticut suburb) economic majors from our esteemed universities has taken its toll on Wall Street.
And hey, Larry Kudlow is hunky dory with Cash for Clunkers.
Hmmm, and small business is usually the ones hiring to end a recession.
Peter Benesh is the author of the editorial. Not IBD
And this is why the “public option” will soon become the only option. Small businesses will be forced to pay the smaller penalty to remain competitive against other companies that do so.