“Staffing firms urged Congress Thursday to repeal the healthcare law’s requirement that employers provide insurance for their workers — even as they continue working with federal regulators to tweak the law.”
“Prudent insurers, employers and benefits advisors should take the same ‘better safe than sorry approach to planning for the Patient Protection and Affordable Care Act that they’d take to planning for computer problems, or a major hurricane.”
“The International Franchise Association, a lobbying group that has long expressed concerns about the Patient Protection and Affordable Care Act, released a study this month claiming that franchise businesses will be discouraged from growing and hiring in 2014, when new health-care mandates are scheduled to kick in. The report estimates that the law will negatively affect ‘tens of thousands’ of franchises. It will allegedly impose more than $6.4 billion in increased costs, not including expenses associated with regulatory compliance, and will impact some 3.2 million full-time employees who work for franchise businesses.”
“The cost for businesses to buy health coverage for workers rose the most this year since 2005 and may reach $32,175 for a family in 2021, according to a survey of private and public employers… The health law enacted last year accounts for 1 to 2 percentage points of the premium increases in 2011, said Drew Altman, chief executive officer of the Kaiser Family Foundation.”
“If anything, these numbers are low. A McKinsey survey of employers released in June found that nearly a third of employers are likely to drop their coverage thanks to ObamaCare. The Urban Institute suggested last year that, in the wake of the health care overhaul, ‘droves of employees—potentially tens of millions—are likely to shift out of employer-provided insurance.’ Former Congressional Budget Office director Douglas Holtz-Eakin found substantial incentives for employers to drop coverage, and estimated that as many as 35 million individuals could end up getting their health insurance from the government-run exchanges created by the health care overhaul. “
“Here’s one more nauseating outcome of that mentality: The Affordable Health Care and Reform Act includes a provision to subsidize coverage for early retirees in the public and private sector who quit working but aren’t old enough to qualify for Medicare… Who could have seen that coming? You offer a pile of free (i.e. taxpayer!) money for public and private companies and their workers to cash out – and they do! So who’s snagging the benefit so far?”
“Glenn Morton, the author of the new book Passing Obamacare, has worked for nearly two decades in the health-insurance business, most recently as a broker who helps employers find better deals among providers. In a discussion with Reason’s Nick Gillespie, Morton adds another problem with recently released Obamacare rules: The mandate to reduce the percentage of insurance costs that go to administrative costs effectively means that insurance brokers’ commissions will be either drastically cut or reduced altogether. If brokers’ role in hunting for better coverage plans is eviscerated, argues Morton, companies will lose their main ally in the search for affordable and dependable coverage plans.”
“In any event, there is no problem that cannot be made worse when legislators convene. And when Congress passed the Affordable Care Act (ObamaCare) it definitely made things worse than they otherwise would have been… Here’s one immediate problem: no one knows how to define ‘administration.’ Just as there is no line item in the federal budget called ‘waste fraud and abuse,’ there is also no line item in any organization’s budget called ‘administrative costs.'”
“Investors believe that the government guarantee of millions of customers to health plans will lead to profits. Unfortunately, this optimism is likely unfounded.
ObamaCare distributes federal grants to states that encourage their insurance departments to increase power of prior approval of premium increases.
And the coming wave of political interference will threaten health plans’ very solvency. We already know that such laws do not keep a lid on health costs.”
“There are 34 million ways to order a Domino’s Pizza, so, thanks to President Obama’s national health care law, the chain’s franchisees may have to spend more than $5 million attempting to squeeze calorie data next to every one of their menu items.”