Proponents of more than doubling the current minimum wage of $7.25 appeared to have overlooked a simple fact. Thanks to government mandates such as Obamacare, today’s minimum wage already effectively amounts to $10.46 an hour. If we more than double the nominal minimum wage to $15, we actually will be requiring employers to pay $18.31 an hour.
Yesterday’s post discussed what we know about Obamacare as its third open enrollment season commences. Here are four major questions about the future of Obamacare that remain unanswered.
Obamacare’s third open enrollment season kicked off yesterday, beginning the next chapter in its turbulent history. Today’s post discusses what we know about Obamacare. Tomorrow’s will discuss what we don’t yet know.
Longtime opponents of the ObamaCare “Cadillac tax” met with lawmakers this week with a new message: We’re willing to compromise. In a fly-in visit with key members and committee staff, employer benefits lobbyists went in seeking a more politically viable solution than full repeal. Rather than eliminating the tax entirely, they pitched exempting the contributions that are made to employers’ health savings accounts, which could otherwise be subject to the 40 percent excise tax.
The Affordable Care Act includes trillions of dollars in new spending on healthcare subsidies and programs. This new spending is financed by new taxes, tax increases, and reductions to Medicare’s budget. The creators of the ACA (ObamaCare) understood that the law’s benefits (subsidies, expansions of existing programs, and new programs) would be more popular with the public than its tax increases, so many of the tax increases did not take immediate effect. The implementation of the more than 20 tax increases in the law was spread out over several years. The latest of the taxes is scheduled to come into effect in 2018. – See more at: http://iwf.org/publications/2798527/Policy-Focus:-Tax-Burden-of-the-Affordable-Care-Act#sthash.JhlJkjzM.dpuf
It’s crunch time for thousands of small business owners who must comply with requirements of the health care law for the first time.
Companies with 50 to 99 full-time employees must offer affordable insurance to employees and their dependents starting Jan. 1. They must also file tax forms with the government by Jan. 31 detailing the cost of their coverage and the names and Social Security numbers of employees and their dependents. While companies of all sizes are subject to the law must file the forms, smaller businesses without big staffs to handle the paperwork may have to hire someone to do it — at a cost of hundreds or thousands of dollars.
The catastrophic failure of Obamacare’s launch is now far in the past. But the public’s acquiescence to a law that keeps creating new problems should not be taken as a sign of enthusiastic acceptance, much less as a sign that Obamacare is working.
The important thing is how each of Obamacare’s current problems — skyrocketing premiums, lower than expected enrollment, and the collapse of several cooperative plans — is related to the others.
A school district in Tennessee is shutting classroom doors because of the added costs of Obamacare. Jerry Strong, the Clay County Director of Schools, told the Associated Press, “the Affordable Care Act… has made it very difficult for us to have our employees properly covered and meet the mandates of the law.” The school district was already struggling with their budget, “struggling with budget concerns for three years.”
Nine out of 10 large companies are working to avoid Obamacare’s so-called Cadillac Tax on health insurance plans if lawmakers fail to reform the law, according to a new study.
The American Health Policy Institute, a non-partisan think tank, found that nearly every major employer in the country is taking steps to avoid the tax, which targets comprehensive health plans deemed to be luxurious by regulators. The law will hike taxes by $68 billion for American workers.
Under the Affordable Care Act (ACA), in 2018, an excise tax on high-value employer provided health plans, the so-called “Cadillac tax,” takes effect. Even before 2018, though, the excise tax is already driving many employers to fundamentally reassess their health care plans. While the tax was intended to reduce health care spending, its impact in the real world is being felt by workers who are seeing the value of their health care plans reduced.