Skip to comments.Companies Say Health Care Costs Hard to Swallow (Obamacare Eliminates Retiree Drug Subsidy Program)
Posted on 03/26/2010 10:11:02 AM PDT by Reaganesque
The health care overhaul will cost U.S. companies billions and make them more likely to drop prescription drug coverage for retirees because of a change in how the government subsidizes those benefits.
In the first two days after the law was signed, three major companies Deere & Co., Caterpillar Inc. and Valero Energy said they expect to take a total hit of $265 million to account for smaller tax deductions in the future.
With more than 3,500 companies now getting the tax break as an incentive to keep providing coverage, others are almost certain to announce similar cost increases in the weeks ahead as they sort out the impact of the change.
Figuring out what it will mean for retirees will take longer, but analysts said as many as 2 million could lose the prescription drug coverage provided by their former employers, leaving them to enroll in Medicare's program.
White House spokesman Robert Gibbs defended the tax law change Thursday, saying the original provision allowing companies to deduct the federal subsidies from their taxable income was a "loophole" that will be closed by the health care overhaul.
For the government, the tax changes are expected to raise roughly $4.5 billion over the next decade to help pay for the health overhaul. Some of the savings would be negated by retirees enrolling in the Medicare plans.
"You're increasing the incentive for companies to say 'We don't want to be in the health care business any more,'" said James Gelfand, senior manager of health policy for the U.S. Chamber of Commerce, which fought the overhaul.
American industrial companies that are struggling to compete globally against companies with much lower labor costs are particularly likely to eventually drop retiree coverage, said Gene Imhoff, an accounting professor at the University of Michigan.
(Excerpt) Read more at google.com ...
it does...medicare is also refusing to pay for many tests required by doctors. this will finish off a lot of people i know.
TV ads about this needs to start running TODAY!
Every time a layer of this onion gets peeled the C of C or someone needs to make ad buys.
HOWEVER, don't give up hope.
If the GOP demonstrates uncharacteristic intelligence and political acumen, they will be a party to the suit by many state AGs as well as institute suits of their own on the constitutionality of this monstrosity of a piece of legislation, tying it up in litigation until they are able to retake Congress, and like cutting off the head of a venomous reptile, cut off all funds for this implementing this thing until the Marxist Muslim in the White House can be defeated in an election or impeached and then exposed for the fraud he is and sent to a Federal Prison for the rest of his miserable life.
Exhibit eleventy-bajillion who CBO static scoring is pure, unadulterated crap.
it will never happen. sad
It will, and we will make it so.
Keep the faith.
Stranger things have happened - like an Islamic viper who is probably not even an American Citizen, getting elected President so soon after an unprovoked Muslim attach which incinerated thousands of American civilians.
It really makes me angry/angrier. My mom watched the replay of the signing on the news the other day and said to me, “This isn’t good, is it?”.
Hope they are not going Medicare Rx to Walgreens then. Hmm, the deem-o-crats.. they just love old people and children. Guess they forgot they will get old as well.
Yeah, I'm just under 30 and would like to say thank you. I'm sure in all your long years, your generation never had the chance to stop, prevent, or get rid of any of the entittlement programs beore it came to this.
So, yah, it looks like it is "our" problem.
Good attitude you got.
This is just a SAMPLE of what is coming down the pike for seniors.
The same thing will be happening now, with employer plans.
The list, ping
Absolutely frightening! They’ve even eliminated HSAs. Wow!
The attached link should answer some questions about the the government’s role behind the increases in health care premiums:
“You’re increasing the incentive for companies to say ‘We don’t want to be in the health care business any more,’”
Music to my ears! That’s not to say the Obamacare package is what we want. I think its opponents should be vowing to change it rather than repeal it. It ain’t gonna get repealed.
Yes, but the point here is that they are pushing these retirees onto Medicare Part D. Withdrawing the tax deduction for RDS is intended to increase people’s dependence on government not the market.
TRI CARE FOR LIFE This from a google search:
This option would help reduce the costs of TFL, as well as costs for Medicare, by introducing minimum out-of pocket requirements for beneficiaries. Under this option, TFL would not cover any of the first $525 of an enrollees cost-sharing liabilities for calendar year 2011 and would limit coverage to 50 percent of the next $4,725 in Medicare cost sharing that the beneficiary incurred. (Because all further cost sharing would be covered by TFL, enrollees could not pay more than $2,888 in cost sharing in that year.) http://www.cbo.gov/ftpdocs/99xx/doc9925/12-18-HealthOptions.pdf
Frankly, I agree. I told the wife to cut off all contributions and tell them to call obastard.
This damn thing is about nothing but raising taxes, reducing benefits, killing old people faster, HUGE complications, more gubment jobs and CONTROL. Other than that it acheieves NOTHING useful that I can see.
OK, maybe it should be repealed. I think of “repeal” as one of the possible sets of changes.
You’ve lived the good life America made possible for you.
Use the few years you have left for the good of future Americans. You know what liberty and prosperity are. Millions will never know if we don’t act.
“they forgot they will get old as well.”
It doesn’t matter. They exempted themselves from this program. They will be covered.
Remembering that I’m a simpleton, explain why erectile disfunction pills should be subsidized at all. It’s sure a gravy train for the drug companies, as they’re expensive and, based on commercials, widely used. I think the only subsidized help for erectile disfunction should be the vacuum devices. Regarding the pills, if they weren’t subsidized the price would probably come way down. Another thing: selling the pills is a little like selling sex, and sex is never cheap for those who need to pay for it.
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