Now this is a new rule I hadn't heard of. We have great insurance through my husband's company and it's always been the company pays 3/4, we pay 1/4. That costs is around $250-300 per month. We're okay with the no more than 9.5% of salary but my husband's one of the higher paid employees, but what about the employees at the bottom of the totem pole. The guy making $10 an hour, that policy is going to be more than 9.5% of his pay...so what will the company do, make employees pay for insurance based on their salary...or lower their policy costs by buying crummy insurance that won't be more than 9.5% of the $10 an hour worker?
I don’t understand the purpose of that requirement, either. It seems like it really would have the effect of lowering the quality of health care insurance for lower income individuals. Also, aren’t there mandates in Obamacare speaking to what must be covered in an “acceptable policy?” If that’s the case, that would most likely increase the price of lower cost insurance policies.
The oth question I have is, what happens if your current policy cost exceeds 9.5 percent of your wages? Is the employer required to buy a cheaper policy for you? The language stated is “...must not exceed 9.5 percent...”
or lower their salaries so the ins will be 9.5%
This is one case where it is possible for IRS to go to the guy with the brown shirt, arrest him, put him on trial, then flense him, 'cause all the way at the top there's one employer ~ Ol'Bama hissef!!!
I am sure the rule writer for this one will disappear shortly.
I think Obamacare is forcing the same thing in law - mandate what kind of coverage you have to provide, which will be too expensive for low wage earners, so cap the amount the employee can pay. Then you force the company to subsidize more of the cost for everyone, or make progressive contribution rates based on salary. Or the company just gives up, pays $2000 and throws everyone on the government plan.
No. Discount plans not allowed. So, companies will crunch the numbers, see which is cheaper insurance or the penalty, and do that.
Bottom line, LOTS of companies will just opt to pay the penalty. Dumping people into the Medicaid pool.
This is a FEATURE not a BUG. The plan is to collapse private insurance in order to get people to WANT Government Single Payor .
This is actually based on a family of 4 and there level of poverty or not.
So let's say that you have a family of 4, the combined income of the family is less than 20K (poverty level) - their insurance premium is free (either the company or the government pays is)
The same family of 4, the combined income is $40K (above poverty level) they have to pay up to - 5.6% of the premium (I think, but that may not be exact) and the remainder of the premium is paid by the company or the government.
Now last but not least, the family of 4, whose combined income is 80K+, they are responsible for 9.8% of their premium costs, and the rest is paid by the company or the government.
This has nothing to do with insuring more people and everything with driving the companies out of offering insurance to employees. This will be the single payer health insurance plan.
CAVEATE: These were the numbers that I heard in Texas at an industry training session. I am positive that they are not locked in stone yet.