One of the reasons that ACA Exchange plans are losing money is their inability to attract enough healthy enrollees. Healthy people are, disproportionately, young people. And large numbers of young adults don’t have to enroll in ACA Exchange plans – because the ACA mandates that their parents’ employer provide them with coverage, and that coverage is almost invariably priced lower.
Anyone up to age 26 with a parent who has employer-based health coverage that includes dependents can enroll in the parent’s plan. This is called the “dependent care mandate,” and is a requirement of the ACA. There are no other requirements for this coverage option: the “child” does not have to live with the parent or be financially dependent or a dependent for tax purposes on the parent. The “child” could be employed and eligible for employer-based coverage on his/her own, but elect to take the parent’s coverage if it’s preferable.
Exchanges are being undermined, in part, by the ACA’s dependent care mandate.
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Before the passage of ObamaCare’s 2,400 pages of coercive mandates and profligate spending, the federal government had already largely wrecked the market for individually purchased insurance, in three interconnected ways.
First, it had effectively established two different health insurance markets—employer-based and individually purchased—by treating them differently in the tax code. Second, it had given an attractive tax break for employer-based insurance while denying it for individually purchased insurance (except for the self-employed). Third, having effectively split the market in two while favoring the employer-based side, it had made it hard for people to move from the employer-based market to the individual market, as it had allowed insurers to treat previously covered conditions as “preexisting.”
A popular conservative alternative, then, would repeal every word of ObamaCare while fixing this longstanding inequity in the tax code.
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The so-called “Cadillac Tax” is a 40 percent excise tax on the value of employer-sponsored health coverage that exceeds certain benefit thresholds, estimated to be approximately $10,800 for employee-only plans and $29,100 for family plans when the tax takes effect in 2020.
While the name may imply the tax applies to a few individuals with luxury health coverage, the truth is it extends much further. 175 million Americans – including retirees, low- and moderate-income families, public sector employees, small business owners and the selfemployed – currently depend on employer-sponsored health coverage and they are all at risk.
On behalf of the American Benefits Council, Public Opinion Strategies conducted a nationwide online survey of 1,200 registered voters from January 29 to February 3, 2016. These findings indicate that voter support for the “Cadillac Tax” is dwarfed by support for repeal.
Voters are more likely to re-elect their representative if they voted to repeal the “Cadillac” tax, though a majority of voters say it makes no real difference in their vote, a report out today from the American Benefits Council says.
Overall, 37 percent of voters said their congressman voting to repeal the tax would make them more likely to re-elect their representative, while 16 percent said it would make them less likely to do so. Still, 47 percent said the vote made no difference. The report was released by the Alliance to Fight the 40, a coalition of groups advocating to repeal the tax on high-cost health plans.
When I first answered God’s call to join the Little Sisters of the Poor and vow myself to Him and to the care of the elderly, I never dreamed of the happiness I would experience in serving, living with and caring for the aging poor until God calls them to Himself. I also never thought one day, I would be walking up the white marble steps of the Supreme Court to attend a legal proceeding in which the high court will decide whether the government can force my order to help offer health care services that violate my Catholic faith and that are already available through existing government exchanges.
Both the percentage of employers who offer insurance and the percentage of people covered will be important to watch as the changes brought about by the Affordable Care Act (ACA) continue to unfold. New coverage provisions and financial assistance provided in the ACA affect employers’ decision to offer coverage and employees’ decisions to take up any coverage they are offered at work. The employer shared responsibility provision, for example, requires employers with 50 or more full-time equivalent employees to offer coverage to full-time employees and their dependent children or face a financial penalty.
On Wednesday the Supreme Court will hear oral arguments in Little Sisters of the Poor v. Burwell, a landmark case challenging the Department of Health and Human Services contraceptive mandate under the Affordable Care Act.
It is common knowledge that the Catholic Church has taught the immorality of abortion and contraceptive use for millennia. Yet the regulations in question force our institutions to pay for insurance that covers abortifacients like Ella and Plan B, plus prescription contraceptives and surgical sterilizations.
The United States was founded on the concept of religious freedom. The First Amendment says clearly that “Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof.”
Vermont has filed a 1332 state innovation waiver to avoid building a website for its small-business insurance exchange. The state hopes to have those employers enroll directly through insurers.
Under the waiver, beginning Jan. 1, 2017, states can request that the federal government waive basically every major coverage component of the Affordable Care Act, including exchanges, benefit packages, and the individual and employer mandates. The only requirement is that a state’s healthcare coverage remains consistent and adequate. Vermont is the first state to send a finalized request (PDF) to the CMS.
Most of the criticism of Obamacare by its right-of-center opponents has focused on its regulatory mandates, botched implementation and rising premiums for less-favored purchasers. Far less attention has been paid to how little the new health law accomplished in fulfilling its advocates’ promises to boost the growth of small business and new entrepreneurial start-up firms.
The Bureau of Commercereports that new business formation inched up slightly for a few years from its low point in 2010 – after four years of decline. But its 2013 figure of 406,000 new businesses remains far below the recent pre-recession peak number of 560,000 in 2006.
Similar measures of entrepreneurial activity by the Kauffman Foundation find modest evidence of recent upticks, but levels still below historical norms.
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Liberals have been claiming for decades that U.S. companies are at a disadvantage because they help finance health insurance for their workers while their competitors in nations with government-run health systems don’t bear those costs.
Instead of addressing the problem, ObamaCare made it worse.
- The law mandated that U.S. firms provide their workers with health insurance or pay a fine of $2,000 to $3,000 per worker, and imposed significant regulatory compliance burdens on them.
- The American Action Forum estimates that the Affordable Care Act has imposed costs of $50.1 billion in state and private-sector burdens and added 177.9 million annual paperwork hours.
- The Congressional Budget Office estimates that the law will result in a reduction in work hours equivalent to the loss of two million jobs over the next decade.