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Documents reveal AT&T, Verizon, others, thought about dropping employer-sponsored benefits
CNN/Money ^ | 5/6/2010 | Shawn Tully

Posted on 05/06/2010 10:26:09 AM PDT by markomalley

The great mystery surrounding the historic health care bill is how the corporations that provide coverage for most Americans -- coverage they know and prize -- will react to the new law's radically different regime of subsidies, penalties, and taxes. Now, we're getting a remarkable inside look at the options AT&T, Deere, and other big companies are weighing to deal with the new legislation.

Internal documents recently reviewed by Fortune, originally requested by Congress, show what the bill's critics predicted, and what its champions dreaded: many large companies are examining a course that was heretofore unthinkable, dumping the health care coverage they provide to their workers in exchange for paying penalty fees to the government.

That would dismantle the employer-based system that has reigned since World War II. It would also seem to contradict President Obama's statements that Americans who like their current plans could keep them. And as we'll see, it would hugely magnify the projected costs for the bill, which controls deficits only by assuming that America's employers would remain the backbone of the nation's health care system.

Hence, health-care reform risks becoming a victim of unintended consequences. Amazingly, the corporate documents that prove this point became public because of a different set of unintended consequences: they told a story far different than the one the politicians who demanded them expected.

(Excerpt) Read more at money.cnn.com ...


TOPICS: Business/Economy; Front Page News; Government
KEYWORDS: democrats; economy; obama; obamacare; schadenfreude; socialisthealthcare
Of course, that implies that this (employers dropping coverage) was an unintended consequence. I've been saying this all along (outside of FR, I was almost universally belittled for holding this belief).
1 posted on 05/06/2010 10:26:10 AM PDT by markomalley
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To: markomalley

duh


2 posted on 05/06/2010 10:30:06 AM PDT by Drango (A liberal's compassion is limited only by the size of someone else's wallet.)
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To: markomalley

This is not unintended consequences. The administration KNEW this was a possibility.


3 posted on 05/06/2010 10:31:56 AM PDT by porter_knorr (John Adams would be arrested for his thoughts on tyrants today!)
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To: markomalley

Employers dropping coverage was an INTENDED consequence by the Obama Administration.


4 posted on 05/06/2010 10:33:29 AM PDT by texteacher
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To: markomalley
The democrats lied people died.

2014 news item.

5 posted on 05/06/2010 10:38:18 AM PDT by Don Corleone ("Oil the gun..eat the cannolis. Take it to the Mattress.")
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To: markomalley
Actually, breaking the link between employment and health care is a good idea. It's a relic of WW II price and wage controls, and distorts the health care market.

We should start calling for individuals to get the same tax break that employers get, so we can own our health insurance policies just as we own our life insurance, fire insurance, and car insurance policies. Those policies don't lock us into a particular employer, and they don't become subject to "pre-existing conditions" when we change jobs.

6 posted on 05/06/2010 10:41:53 AM PDT by JoeFromSidney ( My new book, RESISTANCE TO TYRANNY, now available from Amazon.)
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To: JoeFromSidney
Actually, breaking the link between employment and health care is a good idea. It's a relic of WW II price and wage controls, and distorts the health care market.

Yes, but forced dependence on government largesse (through subsidies) does not liberate you from being a wage slave; it merely changes you from being a wage slave to a vassal of the state.

7 posted on 05/06/2010 10:49:00 AM PDT by markomalley (Extra Ecclesiam nulla salus)
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To: JoeFromSidney
Actually, breaking the link between employment and health care is a good idea. It's a relic of WW II price and wage controls, and distorts the health care market.

That's great and all, but in this instance, those dropped from work plans will likely end up on a government program. Unless that's the end result you were hoping for, I don't see that as a good thing.

8 posted on 05/06/2010 10:49:21 AM PDT by Carling (I'm a neo-McCarthyite ... Obama is a Communist.)
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To: markomalley

Worth repeating:

“Yes, but forced dependence on government largesse (through subsidies) does not liberate you from being a wage slave; it merely changes you from being a wage slave to a vassal of the state.”

Our war of independence 1777 was fought to take the king’s foot off our necks. Now, we rush to kneel to get a “free” cookie. What happened to our Honor and Liberty?


9 posted on 05/06/2010 11:23:36 AM PDT by RicocheT
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To: JoeFromSidney

A worker who currently has an income too high to qualify for the taxpayer-subsuduzed coverage is going to be in a world of hurt if their employer drops their coverage and they have to buy on the open market. This could cost 25-30% of their take home pay. If this happens to me, I will quit my job and reitre, forcing my income low enough to qualify for government hand-outs. Why work?


10 posted on 05/06/2010 11:33:16 AM PDT by Trust but Verify
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To: markomalley
It will be cheaper for them. Pay a $2000 fine but save at least $3000. Doesn’t take a genius to figure out that more companies will follow.
11 posted on 05/06/2010 11:35:33 AM PDT by tobyhill
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To: tobyhill

And even if they give you a raise to offset the cost to you to buy your own, the government gets their cut of your raise before you do. What a racket. This has got to be stopped.


12 posted on 05/06/2010 11:43:53 AM PDT by Trust but Verify
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To: Trust but Verify
“Oh What a Tangled Web We Weave When First We Practice to Deceive”

Good job Rats! /sarc

13 posted on 05/06/2010 11:46:40 AM PDT by tobyhill
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To: markomalley; Jet Jaguar; NorwegianViking; ExTexasRedhead; HollyB; FromLori; ...

ping


14 posted on 05/07/2010 10:44:09 AM PDT by Nachum (The complete Obama list at www.nachumlist.com)
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