Skip to comments.CNN Analyst: Many Companies Using Obamacare as 'Excuse' to Cut Employee Health Insurance
Posted on 08/22/2013 2:00:46 PM PDT by Sub-Driver
CNN Analyst: Many Companies Using Obamacare as 'Excuse' to Cut Employee Health Insurance By Matt Hadro Created 08/22/2013 - 4:35pm
CNN's global economic analyst says many companies are just using Obamacare as an "excuse" to make employee health insurance cuts they already planned to make.
"[H]health care inflation is between seven and ten percent a year. And that's with or without Obamacare. So I do think that you're going to see a lot of companies using Obamacare and the ACA as an excuse to make changes in their plan that they might have been planning to make already," said Rana Foroohar on CNN Thursday afternoon.
Foroohar was discussing UPS dropping 15,000 employee spouses from its health insurance plan. UPS blamed "cost increases" from Obamacare for the move, but Foroohar thinks that similar cuts are pre-planned for many companies.
As Time's assistant managing editor for economics and business, Foroohar holds some interesting economic principles.
After one of the presidential debates last year, she attacked Romney's tax plan: "There's a bigger math issue here, and that's whether or not lowering tax rates actually creates jobs and growth, and I would argue that, factually, it doesn't."
She did, however, give credence to Obama's plans for stimulus and pointed to communist China as an example:
"I think what the President tried to convince voters, is that investment is going to create growth...and I think that there's a case to be made for that. If you look at where jobs are going - to places like China - infrastructure spending is much higher. There's a lot more investment in those, sort of, basic competitiveness issues."
Last July on Face the Nation, Foroohar reiterated that argument and thought it "sad" that taxes were mentioned so much during the 2012 campaign:
"Well, I think that the President would like to spend a lot more on infrastructure and education. This is what we need to be talking about right now. I'm actually sad that we're spending so much time talking about taxes because one thing that's not going to get us some kind of a growth boom is a tax cut. I mean, it hasn't worked in the last three or four years. It really hasn't worked since 2001 when you had much broader across-the-board tax cuts."
Below is a transcript of the segment, which aired on CNN Newsroom on August 22 at 2:38 p.m. EDT:
DON LEMON: I also want to ask you about UPS's, the big change in employee health insurance. If you're a non-employee and your husband or wife works, UPS plans to kick your spouse off its medical plan and the company's blaming Obamacare. Is that the way of the future? And is that the full story? Or are they just looking for a scapegoat?
RANA FOROOHAR, CNN global economic analyst: Well, A, it is the way of the future. Speaking about college price inflation, health care inflation is between seven and ten percent a year. And that's with or without Obamacare. So I do think that you're going to see a lot of companies using Obamacare and the ACA as an excuse to make changes in their plan that they might have been planning to make already. In fact there was a big survey of a bunch of Fortune 500 firms, about four percent are planning similar changes this year, eight percent in 2014. And one interesting point is that women of childbearing age tend to drive up health care costs. And that may be one reason that you'll see a lot of companies opting to push spouses off if they can.
Another liberal who can read minds.
Talk about a “true believer”.
All-hail government. Praise be government. Only the benevolent, all-powerful government can save us and protect us.
This guy is a moron.
Blame EEEEEEVIL corporations, not Obama.
That’s the template. And from what I can see it’s largely working.
Really, that’s what this is all about, the corrupt, ministry of MSM propaganda working to deflect blame from their lord and savior, Obama.
I am sure that is true. Employers want to get out of the health care business. Obamacare is a great pretext to do so. They want someone else to take it over. And it makes them more competitive globally.
Let me understand... companies have been providing health care insurance to employees and their families, basically since WWii. Originally as a benefit to attract good candidates to work. So 70 or more years. But now, just by coincidence, Obamacare has provided a convenient excuse to stop providing insurance and these companies have been waiting for this opportunity all this time. Brilliant!
With these people whatever the issue is, it’s never the issue. So if people say they don’t like Obamacare, that’s not the problem, the problem is they are racist or greedy or prejudiced. Same thing with global warming or Amnesty or affirmative action or any other issue. Anytime a conservative tells what his objection is to the plan, the liberals always read his mind and declare there is a much more sinister motive for his objection.
Even if it’s true, so what? The Obama admin gave them the excuse.
Besides, if it was really just an excuse, the Obama admin would have a law against it.
For liberals and, with no difference, MSNBC, it is the requirement of businesses to go into bankruptcy to keep Obama’s dream alive. Economics and balance sheets are no matter to these true believers!
Oops, I should have added CNBC as well.
2. Obamacare is going to cost a bundle and
3. The actual cost of Obamacare and future Presidential and bureaucratic regulations on all businesses are obscure enough that
4. The economy is being purposely depressed to bring about Obamacare.
Should I smile and shrug and admit to error in saying CNBC when I meant CNN. Nah, they are all of a breed of liberal media!
Stupid beyond belief, and not even an ounce of research! A Business has to survive, and it will do what it needs to survive. Good grief!
I wonder what CNN is doing about its health care for its employees.
In the leftist mind, all businesses exploit their employees and get rich on their hard work.
In the real world, businesses have to work very hard to make a profit after paying employees, insurance, and taxes.