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View Diary: SOB cancelled our health ins (241 comments)

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  •  bradams - the broker only is paid (16+ / 0-)

    when she sells insurance plans so what incentive would she have to encourage clients to drop their group plans or to misinform anyone. It's in her interest to be a champion for group health plans?

    Employers don't provide benefits because it provides a tax benefit to them. If insurance premiums cost $1 and the business pays a 35% tax rate the company is out 65 cents. If the company keeps the dollar and pays the 35 cents of tax it is ahead 65 cents, so the tax savings is a straw man. The reason that employers provide health coverage is to attract and retain good employees and provide a pre-tax benefit which has a high value because any individual plan would be more expensive and paid for with after tax dollars.  

    "let's talk about that"

    by VClib on Fri Nov 30, 2012 at 11:31:05 PM PST

    [ Parent ]

    •  If she's a wingnut, she just might "take (5+ / 0-)

      one for the (1%) team" for ideology's sake.

      NOW SHOWING
      Progressive Candidate Obama (now - Nov 6, 2012)
      Bipartisan Obama returns (Nov 7, 2012)

      by The Dead Man on Sat Dec 01, 2012 at 03:42:23 AM PST

      [ Parent ]

    •  That's a fair point - which makes me think that (6+ / 0-)

      the two key pieces of business information in the diary:

      The change was that our group policy was dissolved and we were all without health insurance as of Friday.

      and
      Our hours were cut by half a couple weeks ago with a note that he was reviewing the benefits to save the company money.
      either say this is a company in a death spiral externally inflicted, or one of their own creation. The second part is instructive, either they had insufficient contract work, or that they were also seeking to do a Papa John's "equivalent full-time worker" scam.

      In general though, the move doesn't make business sense.

      For, as you say:

      The reason that employers provide health coverage is to attract and retain good employees
      which clearly isn't the employer's primary goal.
      •  I say option b (6+ / 0-)

        They are in a death spiral of their own creation, because the company is obviously being run by an idiot.

      •  major mistake in ACA was exempting some workers (4+ / 0-)

        from the health insurance requirement.  ACA exempts employees who work in businesses with fewer than 50 employees and any employee who works fewer than 30 hours per week for any size company, from the business insurance mandate.

        This means when employers do not have to compete for workers by offering health benefits, many businesses will respond to make their employees exempt from the insurance companies.

        Some businesses will split themselves up into multiple smaller companies of less than 50 employees.  Businesses near 50 employees, will layoff employees and hire outside firms to do the work.

        Larger businesses will convert workers from full time to less than 30 hour part time employees.

        Over the next 15 months we will hear many stories of businesses, non probilts and even state and local government doing this.

        ACA should have not exempted any employees from having a health insurance cost to the employers.

        This was so easy to expect, and so easy to avoid.

        It is critical that people outraged from workers being treated this way respond by pressuring government to change the law, not by attacking the businesses - as the solution is fixing this major mistake in ACA. Attacking these businesses removes pressure on government to change the law.

        The most important way to protect the environment is not to have more than one child.

        by nextstep on Sat Dec 01, 2012 at 08:33:09 AM PST

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        •  Spliting won't legally work (0+ / 0-)

          A relative might suddenly feel like going into a slightly different business however.

          And the owner of the original business might feel like tapering off a bit starting in 2014.

          •  Depends on the business (1+ / 0-)
            Recommended by:
            VClib

            A person or group of owners who own 5 stores, restaurants, etc., may decide to re-organize as 6 businesses - 5 individual stores and a 6th that provides services to the five.

            For some businesses, splitting up would be more difficult.

            The most important way to protect the environment is not to have more than one child.

            by nextstep on Sat Dec 01, 2012 at 06:38:32 PM PST

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        •  In an oligarchy, how do you impress (0+ / 0-)

          The importance of changing poorly written legal mandates? I have two Senators - Di Feinstein (As long as my husband can rake in billions, so what about anything else?)

          And Barbara Boxer.

          I used to really like Barbara Boxer. But apparently, the Powers that Be got hold of her. The only topic she now is interested in  relates to how awful the Tea Party people are.

          I sometimes think maybe her staff is filtering out the concerns of those of us who attempt getting through to her on  issues like Health Care, not spending so much on the military and a need to stop having our jobs sent overseas. (This household has had debt collectors call on behalf of Sallie Mae, the student loan agency. And the people calling are based in a  call center in Macao! How do Americans pay back their debts if even the telephone jobs are overseas!)

          Offer your heart some Joy every day of your life, and spread it along to others.

          by Truedelphi on Sat Dec 01, 2012 at 03:18:09 PM PST

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    •  The decision was already made... (2+ / 0-)

      The broker's comments apparently were made when meeting with the employees to inform them they were losing their benefits.  So the decision was already made and the broker wasn't trying to sell a group policy.  I assume the reason she was meeting with the employees was to try and sell them individual policies.  Either that or company management was too chicken to tell the employees themselves and persuaded the broker to do it on their behalf.  

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