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Q.

How will I know if my boss gets rid of company insurance because of the Affordable Care Act?

 

Answers From Experts & Organizations (1)

Health Reform
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A.

The only real way to know is to ask. However, if your employer tells you it is eliminating insurance because of the law, I would be wary of the answer.

 

In fact, the law requires all employers with 50 or more workers to either offer health insurance coverage or to pay a penalty for failing to do so. They'll also pay a penalty if at least one full-time employee receives a subsidy to help buy insurance through one of the new marketplaces.

 

Today, 98% of employers with more than 200 workers already offer health insurance, as do 94% of businesses with 50 to 199 employees. And, they’ve providing insurance long before the ACA became law for a host of good reasons the law doesn't change. For one, providing insurance is a tax-free form of compensation. And, a good benefits package helps employers compete for employees. 

 

We have heard of some small employers holding off on hiring for fear of crossing the 50-employee threshold – it could certainly raise an employer's costs if they currently employ fewer than 50 workers and don’t offer insurance. And, some industries with part-time or contract workers are also reducing hours to avoid raising insurance costs because the law requires large employers to insure workers who put in on average 30 hours per week. 

 

But for small companies, the law in many cases increases health plan choices and for very small companies provides tax credits that can lower insurance costs. 

 

I would need to know more about your particular employer's situation, but on the face of it, it doesn't seem eliminating insurance if it's already being offered makes sense because of the health reform law.

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Answers from Contributors (7)

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A.

I have been in the health insurance business for 40 years.  The ACA (Obamacare) mandated a certain level of benefits that must be included in all health plans.  This is identical to the what every state legislature does when it mandates what is minimum coverage for auto insurance.  One wants to know that if someone crashes into you that they at least have enough insurance to fix your car, if not their own.


The exchanges are simply PRIVATE insurance companies competing for business in a marketplace.  They are all quoting the same benefit packages and are simply competing at price.  No one demanded or required them to compete for this business or offer insurance in the exchanges.  Some exchanges have more companies offering insurance than others.  These private companies are doing so because they think they can make a few bucks.  It is not some government conspiracy to take over the insurance business.


That having been said, one may notice that no other industrialized nation on earth has seen fit to copy our health care system.  It simply has not worked, and I personally see very little on the horizon to make me believe it will work in the future.


In fact, in response to the writer who suggested more universal plans are not working and are unpopular might look only to our neighbor to the north whose health care system is quite popular with Canadian citizens.  I know, I know, Canadians are marching to the US for their health care needs.  This post is to short to actually address this issue, but suffice to say Canadians are NOT coming in any great numbers to the US for their basic health care needs.  Actually, when you factor out tourists from Canada who receive emergency treatment, the incidence of Canadians coming to the US is actually quite small, and is comprised almost exclusively of higher income individuals seeking elective surgery due to the wait in Canada for those types of services.


Take a look around the world and compare the healthcare systems of other advanced societies.  Many have found ways to both meet the needs of their citizens and do it at significantly less money than we spend.  For your research pleasure I would recommend looking at that downtrodden and financially irresponsible country of Switzerland as an example of how we might address this issue ion the future.  See the book "The Healing of America; A Global Quest for Better, Cheaper, and Fairer Health Care" by T.R. Reid.


Finally, yes, we have the finest health care system in the world, but only if you can afford it.





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The answer this so called " expert " gave is misleading. The truth is that the ACA will cost small businesses more or it will cost tax payers way more. Anytime the government says they give subsidies they are talking about using the taxes they collect from you and your boss to pay for it. So it is a pay me now or pay me later thing. This law is not suppose to work. It is designed to crush privately owned insurance and collapse the healthcare system in our country. They want a single payer system. The same one that has failed in every country and in every way. So yes it will cost you more. A lot more and for less coverage. Anytime an Obama spokesperson talks about how obamacare isn't working they end it with" that's why we need a single payer system". So take what this site says with a grain of salt. They are part of healthcare.gov.. This administration in the White House has lied from day one.

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My daughters employer switched retirees to another plan.  Even her disability annuity is less. She  has just undergone colon surgery and the new plan does not offer her required med supplies, nursing home for rehab even her disability annuity is less.  READ WHERE A LOT OF CORPORATIONS have done this  - tired of everything being blamed on Obama.  What are people doing especially thru the surgeries, infections, wound pumps - when something like this happens

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I will put it this way. My wife has a heart condition and went without seeing a DR for almost 4 years because we could not afford the insurance. Now she has seen her DR and dentist and has not paid a penny more than the premium. We are one of the few 1st world countries without a centralized health care system. The reason for that is because the insurance companies are going to loose a lot of money. ACA will work, and that scares the pants off the insurance companies.

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