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Companies Say Health Care Costs Hard to Swallow (Obamacare Eliminates Retiree Drug Subsidy Program)
Associated Press ^ | 03/26/10 | Josh Funk

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 ...


TOPICS: News/Current Events; Politics/Elections
KEYWORDS: cut; obama; retiree; subsidy
This article was referrenced in another thread and I thought it should have it's own thread.
1 posted on 03/26/2010 10:11:03 AM PDT by Reaganesque
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To: Reaganesque

it does...medicare is also refusing to pay for many tests required by doctors. this will finish off a lot of people i know.


2 posted on 03/26/2010 10:12:44 AM PDT by dalebert
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To: Reaganesque

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.


3 posted on 03/26/2010 10:15:19 AM PDT by Buckeye McFrog
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To: Reaganesque
I'm rapidly at the point of I don't give a shi@ anymore. I can survive but I feel real sad that most Americans will be living on a shi@ pile. For the few years I have left, the joke in on young Americans. So sit on your as@ and act like fools. Your problem.
4 posted on 03/26/2010 10:16:57 AM PDT by Logical me
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To: dalebert
Well, they will die happy, content in the knowledge that the death of unproductive Americans will benefit millions of parasitic illegal invaders, thanks to Barack Hussein.
(Sarcasm).

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.

5 posted on 03/26/2010 10:18:13 AM PDT by ZULU
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To: Reaganesque
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.

Exhibit eleventy-bajillion who CBO static scoring is pure, unadulterated crap.

6 posted on 03/26/2010 10:18:26 AM PDT by Wyatt's Torch (I can explain it to you. I can't understand it for you.)
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To: ZULU

it will never happen. sad


7 posted on 03/26/2010 10:19:40 AM PDT by dalebert
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To: Reaganesque

8 posted on 03/26/2010 10:19:56 AM PDT by PLD
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To: Buckeye McFrog
TV ads about this needs to start running TODAY!

Who's going to run them? The geniuses at the RNC? They didn't do it before the bill passed. I'd like to see it but I'm not holding my breath.
9 posted on 03/26/2010 10:21:37 AM PDT by AnotherUnixGeek
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To: dalebert

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.


10 posted on 03/26/2010 10:22:01 AM PDT by ZULU
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To: Reaganesque

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?”.


11 posted on 03/26/2010 10:24:53 AM PDT by ReneeLynn (Socialism is SO yesterday. Fascism, it*s the new black. Mmm Mmm Mmm.)
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To: All
This is, in effect, a 28% tax hike on retirees who are on this program.
12 posted on 03/26/2010 10:26:10 AM PDT by Reaganesque ("And thou shalt do it with all humility, trusting in me, reviling not against revilers.")
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To: Reaganesque

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.


13 posted on 03/26/2010 10:29:29 AM PDT by momincombatboots (Semper Fi to my Marine in Afghanistan, my friend in Iraq & friend in Korea. Love u all!)
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To: Logical me
For the few years I have left, the joke in on young Americans. So sit on your as@ and act like fools. Your problem.

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.

14 posted on 03/26/2010 10:39:22 AM PDT by Repeat Offender (While the wicked stand confounded, call me with Thy Saints surrounded)
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To: Reaganesque; editor-surveyor; brytlea; Diana in Wisconsin; Kakaze; Tammy8; unkus; metmom; ...
Thanks for posting this thread, Reaganesque. I posted the following link on Facebook, and encourage all of you to post this link to the social networking site you may have access to.

Timeline of Major Provisions in the Democrats’ Health Care Package

This is just a SAMPLE of what is coming down the pike for seniors.

The 500-billion dollar cut to Medicare is just the beginning, and remember folks, everyone will end up on Medicare eventually!
 
For the seniors who voted democrat in 2008, here's the payoff: (Very few FReepers, I hope.)

In 2011
•No longer allowed to use FSA, HSA, HRA, Archer MSA distributions for over‐the-counter  medicines
•Medicare cuts to home health begin
•Medicare reimbursement cuts when seniors use diagnostic imaging like MRIs, CT scans, etc....
•Medicare cuts begin to ambulance services, ASCs, diagnostic labs, and durablemedical equipment
•Seniors prohibited from purchasing power wheelchairs unless they first rent for 13 months.
The really magnanimous part..."Seniors who hit Part D “donut hole "in 2010 receive $250 check (3/15/11)" WOW! A whole $250!
 And for those of you with aging parents...also in 2011,
•New Medicare cuts to long‐term care hospitals begin (7/1/11)
•Additional Medicare cuts to hospitals and cuts to nursing homes and inpatient rehab facilities begin (FY12)
 
 
I'm wondering if seniors are prohibited from purchasing a power wheelchair even if they pay ALL the cost?

Note: I was forced into Medicare by my insurance company when I hit 65.


15 posted on 03/26/2010 10:39:38 AM PDT by greyfoxx39 (I used to eat a lot of natural foods until I learned that most people die of natural causes.)
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To: Reaganesque
I had a better drug plan with my former employer than Medicate Part D. However, when Part D became law, my former employer dumped me on the Feds. Costs more. I get less. Thank you, George Bush.

The same thing will be happening now, with employer plans.

16 posted on 03/26/2010 10:42:46 AM PDT by JoeFromSidney
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To: Reaganesque; Jet Jaguar; NorwegianViking; ExTexasRedhead; HollyB; FromLori; ...

The list, ping


17 posted on 03/26/2010 10:44:35 AM PDT by Nachum (The complete Obama list at www.nachumlist.com)
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To: greyfoxx39

Absolutely frightening! They’ve even eliminated HSAs. Wow!


18 posted on 03/26/2010 10:49:31 AM PDT by Reaganesque ("And thou shalt do it with all humility, trusting in me, reviling not against revilers.")
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To: Reaganesque

The attached link should answer some questions about the the government’s role behind the increases in health care premiums:

http://www.ramsgate.biz/Headline%20News/Medicare,%20Medicaid%20underpayments%20push%20private%20premiums%20up.htm


19 posted on 03/26/2010 10:52:22 AM PDT by Enough is ENOUGH (Select conservatives for the coming primaries, now. Vote out the incumbents.)
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To: Reaganesque

“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.


20 posted on 03/26/2010 11:05:45 AM PDT by frposty (I'm a simpleton)
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To: frposty
Then you're a defeatist and an accomodationist. Neville Chamberlain's got a seat with your name on it right next to his.

Three Rs III
21 posted on 03/26/2010 11:07:23 AM PDT by Oceander (The Price of Freedom is Eternal Vigilance -- Thos. Jefferson)
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To: frposty

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.


22 posted on 03/26/2010 11:09:33 AM PDT by Reaganesque ("And thou shalt do it with all humility, trusting in me, reviling not against revilers.")
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To: dalebert
Gird your loins gang, here it comes!!
23 posted on 03/26/2010 12:45:27 PM PDT by hstacey
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To: Reaganesque

TRI CARE FOR LIFE This from a google search:

http://economicspolitics.blogspot.com/2009/05/tricare-for-life-is-obama-trying-to.html

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 enrollee’s 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


24 posted on 03/26/2010 3:08:43 PM PDT by GailA (obamacare paid for by cuts & taxes on most vulnerable Veterans, disabled,seniors & retired Military)
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To: Logical me

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.


25 posted on 03/27/2010 10:05:48 AM PDT by Sequoyah101 (Half of the population is below average)
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To: Oceander

OK, maybe it should be repealed. I think of “repeal” as one of the possible sets of changes.


26 posted on 03/27/2010 8:28:11 PM PDT by frposty (I'm a simpleton)
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To: Logical me

C’mon man.

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.


27 posted on 03/27/2010 8:33:36 PM PDT by exit82 (Democrats are the enemy of freedom. Sarah Palin is our Esther.)
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To: frposty
Anything that is intended to give free/subsidized viagra to convicted sex-offenders should be repealed, period.

DNC Pedophiles II, small version
28 posted on 03/27/2010 8:38:37 PM PDT by Oceander (The Price of Freedom is Eternal Vigilance -- Thos. Jefferson)
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To: momincombatboots

“they forgot they will get old as well.”

It doesn’t matter. They exempted themselves from this program. They will be covered.


29 posted on 03/27/2010 8:48:14 PM PDT by Humal
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To: Oceander

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.


30 posted on 03/28/2010 2:39:19 PM PDT by frposty (I'm a simpleton)
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To: frposty
I completely agree with you on the basic point that Viagra (or any of its functional equivalents) should not be subsidized at all. Think of it - what better incentive would some poor schmuck of a guy have to go out there, work hard, and get rich, other than because he had to in order to get a "woodie"?

Nonetheless, even if we're going to be stupid enough to subsidize them at all, we most certainly should not be providing them to people who use their "wood" to commit atrocities on young children. The democrats should not have voted against the republican amendment to deny Viagra (and its equivalents) to convicted sex-offenders - that simply demonstrates how depraved they are and how indifferent they are to the amount of harm they cause, just so long as they can realize their own fascist power-grab fantasies.

DNC Pedophiles II, medium version
31 posted on 03/28/2010 9:20:17 PM PDT by Oceander (The Price of Freedom is Eternal Vigilance -- Thos. Jefferson)
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