Sunday, September 27, 2009
Democrats speak with forked tongue
President Obama has said time and again that, if you like your private health insurance, the new reforms being proposed will allow you to keep it.
But wait a minute. That’s not his decision and it’s not yours. Your employer will decide.
Employers have been plagued for years by steep increases in health care benefits, causing most to shift about 25% of the cost to employees in the form of payroll deductions.
The new regs would require employers to insure their employees or pay a tax of 8% of payroll. Employees would then receive Medicare-like government coverage.
My guess is that most employers now pay 6% to 14% of payroll for Blue Cross-like coverage, plus the costs of administering the program and complying with the rising heap of regulations. Given the opportunity to lower costs, they will pay the tax. And employees would - initially - welcome not having $50 to $350 deducted from their monthly pay for health insurance.
Obama may be technically correct that the government won’t mandate the public option, but most employers would eventually elect the government plan. Unless you work for a very profitable company, it will only be a matter of time before you join the estimated 100 million employees who will be moving to government insurance.
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