red states rule
10-20-2011, 03:05 AM
Now the lieft will whine how employers are putting profits ahead of people. So what if an employer loses money hiring people under Obamacare? It is for the common good - right?
President Obama’s health care law requires employers to offer health benefits to full-time employees. This employer mandate will price many unskilled workers out of full-time employment.
After paying the new health premiums, the minimum wage, payroll taxes, and unemployment insurance taxes, hiring a full-time worker will cost employers at least $10.03 per hour. Full-time workers with family health plans will cost $13.75 per hour. Employers who hire workers with productivity below these rates will lose money. Businesses employing less skilled workers will probably respond by dumping their employees onto the federally subsidized health care exchanges and replacing full-time positions with part-time jobs.
Employer Mandate
A major concern with the health care law is that, in response to the massive expansion in Medicaid eligibility and the new premium subsidies offered through the federally designed exchanges, employers will stop offering employer-sponsored coverage. To help mitigate this and to hold down the cost of these provisions, Obamacare penalizes businesses that do not provide health insurance covering at least “minimum essential benefits.”
Businesses with 50 or more full-time workers must pay a $2,000 penalty for each employee, beyond the first 30 workers, who qualifies for subsidies and does not have employer coverage.[1] (http://www.debatepolicy.com/#_edn1) Part-time workers also count toward the number of employees in the firm (and thus toward the 50-employee threshold), but the government does not penalize firms for not offering them qualifying insurance.
Beginning in 2014, many employer-sponsored plans will be required to provide a minimum essential benefits package.[2] (http://www.debatepolicy.com/#_edn2) Although the essential benefits are intended to reflect what typical employer-sponsored plans offer, the Congressional Budget Office (CBO) has estimated that they will likely be more expensive than the plans covering many workers and their families today.[3] (http://www.debatepolicy.com/#_edn3) The minimum essential health benefits will be determined by the Secretary of Health and Human Services (HHS) after “notice and an opportunity for public comment” and will define a minimum level of coverage benefits and limits on cost-sharing for certain types of coverage.[4] (http://www.debatepolicy.com/#_edn4)
The CBO has estimated that the minimum national premium for single coverage will be $5,000 and $12,500 for family coverage.[5] (http://www.debatepolicy.com/#_edn5) Furthermore, to avoid being fined the employer must not only offer coverage, but also restricts the share of premiums that employees contribute to 9.5 percent of their family income.
http://www.heritage.org/Research/Reports/2011/10/Obamacare-Will-Price-Less-Skilled-Workers-Out-of-Full-Time-Jobs
President Obama’s health care law requires employers to offer health benefits to full-time employees. This employer mandate will price many unskilled workers out of full-time employment.
After paying the new health premiums, the minimum wage, payroll taxes, and unemployment insurance taxes, hiring a full-time worker will cost employers at least $10.03 per hour. Full-time workers with family health plans will cost $13.75 per hour. Employers who hire workers with productivity below these rates will lose money. Businesses employing less skilled workers will probably respond by dumping their employees onto the federally subsidized health care exchanges and replacing full-time positions with part-time jobs.
Employer Mandate
A major concern with the health care law is that, in response to the massive expansion in Medicaid eligibility and the new premium subsidies offered through the federally designed exchanges, employers will stop offering employer-sponsored coverage. To help mitigate this and to hold down the cost of these provisions, Obamacare penalizes businesses that do not provide health insurance covering at least “minimum essential benefits.”
Businesses with 50 or more full-time workers must pay a $2,000 penalty for each employee, beyond the first 30 workers, who qualifies for subsidies and does not have employer coverage.[1] (http://www.debatepolicy.com/#_edn1) Part-time workers also count toward the number of employees in the firm (and thus toward the 50-employee threshold), but the government does not penalize firms for not offering them qualifying insurance.
Beginning in 2014, many employer-sponsored plans will be required to provide a minimum essential benefits package.[2] (http://www.debatepolicy.com/#_edn2) Although the essential benefits are intended to reflect what typical employer-sponsored plans offer, the Congressional Budget Office (CBO) has estimated that they will likely be more expensive than the plans covering many workers and their families today.[3] (http://www.debatepolicy.com/#_edn3) The minimum essential health benefits will be determined by the Secretary of Health and Human Services (HHS) after “notice and an opportunity for public comment” and will define a minimum level of coverage benefits and limits on cost-sharing for certain types of coverage.[4] (http://www.debatepolicy.com/#_edn4)
The CBO has estimated that the minimum national premium for single coverage will be $5,000 and $12,500 for family coverage.[5] (http://www.debatepolicy.com/#_edn5) Furthermore, to avoid being fined the employer must not only offer coverage, but also restricts the share of premiums that employees contribute to 9.5 percent of their family income.
http://www.heritage.org/Research/Reports/2011/10/Obamacare-Will-Price-Less-Skilled-Workers-Out-of-Full-Time-Jobs