OK people, what I'm hearing is Obama gave business a 1 year reprieve on ObamaCare because big business will without doubt drop company insurance and tell us to get Obamacare. The penalty is so much cheaper than covering us with insurance, they have to do it. That gave all business one more year of insurance before the hammer falls after the election in 2014. That is why the union is having a hissy fit. They know what's coming. This minute, we are relying on the union bosses to get some sort of carve out. People, that ain't gonna happen. Hopin for change.
"The penalty is so much cheaper than covering us with insurance, they have to do it."
Take a couple of minutes and try to think about this.
Right now, AT&T offers insurance to most of its employees. There is no penalty for not offering insurance. So they willingly pay for insurance for their employees. They are not forced to. They do so willingly. Understand?
With Obamacare, they will pay a penalty for each employee they do not offer insurance for. So what is added is a penalty for not offering insurance. Understand?
So, if AT&T voluntarily provides insurance now, why do you think they will stop if there is also a new penalty for not providing it? They actually have an incentive to provide more people with insurance.
It would be like you voluntarily shoveling the sidewalk in front of your house every time it snows. If the city then decides to fine people $50 for NOT shoveling the sidewalk, will you stop shoveling the sidewalk so you can pay a $50 fine? No, you will continue shoveling the sidewalk, and hope the $50 gets more people to shovel the sidewalk. Understand?
Ok, I'll try to show you how capitalism works. Right now T gives everybody insurance. That's not exactly true. They take our wages and insure us with OUR money, we just bargain for it at contract time. Just to pick a round number for a reasonably priced Cadillac plan for a family of 4, lets say $2k per month. They actually pay UNH to handle it for them for a custom rate. When MANDITORY coverage comes a year from now, they will look at the cost of paying our insurance and the cost of the fine/tax or whatever they call it. They won't have to give us money for us to buy insurance, so it would make sense to pay a $700 fine vs. $2k per month.
The letter comes in the mail, just as it ALREADY has for millions of self insured people that T will drop you on such and such date and we wish you all the luck. This will add billions to the bottom line and we get to enjoy ObamaCare.
Now if the phone phactory decides to pay us the equivalent of $2k per month, hey, no problem! What do you think the odds are?
This is the reason,( one of them anyway), that the union is having the screaming poops as they are realizing what is about to happen to the people that they allegedly represent. After giving millions to Dems and getting the Muslim Kenyan elected twice, they get hemorrhoids instead of nirvana.
There is NO business going to WILLINGLY pay for private insurance if the fine is cheaper. Why would they? They will keep employee counts under 50 if they can and keep hours under 30 if they are able. To have a full time job in a large company with paid for insurance is just DEAD!
PS. Even if we get the carve out, we will be assessed a "Cadillac" insurance tax in 2016. That means if you make $60k a year, you can add $24k to that to pay tax on because you have company insurance. If your wife works and you get some overtime, we will look at taxes on $150k+