Your Employer is About to Drop Your Coverage

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pjbogart
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Your Employer is About to Drop Your Coverage

Postby pjbogart » Fri Jun 29, 2012 8:17 pm

The current Tea Party scare tactic is a silly scenario that's been peppered liberally on talk radio and FoxNews since yesterday afternoon. I'm not sure who started the meme, but I heard it first on Rush Limbaugh yesterday and have heard it multiple times since, from hosts and callers on liberal and conservative talk radio. Here it comes...

Question: If my employer realizes that the fine for not having insurance is so low compared to the costs of the insurance, why wouldn't my employer simply cancel my insurance and pocket the difference?

Answer: Why did your employer offer insurance in the first place? If your employer is willing to leave you uncovered to save money, why didn't they cancel your insurance five years ago when there wasn't even a fine for doing so?

I know, it doesn't make much sense, but it seems to be playing well with the folks who listen to conservative talk radio.

bdog
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Re: Your Employer is About to Drop Your Coverage

Postby bdog » Fri Jun 29, 2012 9:26 pm

The CBO report I just read says there is a possibility that a relatively small number of employees might lose coverage through their employer.

But then they also say some employees may gain coverage.

This is due to changing incentives that I do not understand. I'm just starting to look into what all this is about since it has been green-lighted.

Why do you continue to listen to this talk radio? It always amuses me when people disparage talk radio as what really comes out is "I listen to a lot of talk radio".

pjbogart
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Re: Your Employer is About to Drop Your Coverage

Postby pjbogart » Fri Jun 29, 2012 9:52 pm

I learn a lot from Rush Limbaugh, bdog. He's lying 99% of the time so if you just believe the opposite of whatever he says, you'll be right 99% of the time.

As for whether some will gain and some will lose, that's pretty irrelevant to Rush's claim. He's claiming that your employer will drop you because the fine is less than the insurance, but that makes no sense if your employer covered you when there was no fine. And the scenario is only relevant to people who had insurance before the ACA took effect, so essentially Rush Limbaugh's scenario applies to 0% of people.
Last edited by pjbogart on Fri Jun 29, 2012 10:03 pm, edited 1 time in total.

pjbogart
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Re: Your Employer is About to Drop Your Coverage

Postby pjbogart » Fri Jun 29, 2012 10:00 pm

bdog wrote:This is due to changing incentives that I do not understand. I'm just starting to look into what all this is about since it has been green-lighted.


So, were you one of those people who opposed "Obamacare" even though you knew nothing about it? My understanding is that when people are polled as to the specifics of Obamacare, they overwhelmingly support it, other than the mandate. When you just ask them if they like Obamacare, they don't like it. That sounds to me like the problem is ignorance.

For instance, currently health insurance companies spend an average of 40% of premiums on administration, ie advertising, labor, dividends, etc. The ACA requires that health insurance companies spend 80% of premiums on healthcare. Less television commercials, more mammograms. Less CEO pay, more routine physicals. Less dividends, more flu shots.

Do you think that's a bad thing?

Huckleby
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Re: Your Employer is About to Drop Your Coverage

Postby Huckleby » Fri Jun 29, 2012 11:52 pm

ya, this one drives me crazy.

The odd thing is, many of the people making this argument are not stupid, and I don't think they are dishonest. It's more a case of wanting to believe something, and being overcome by emotion.

I guess there is one thread of thought that is legitimate: some employers might find it more acceptable to drop their emplyee's health coverage, knowing that the employees will be OK buying insurance on exchanges.

BTW, this is an extremely positive thing! Anybody who studies health care knows that employer-provided health care is the root of much evil. It is better to be able to keep health care when you change or lose jobs, and exchanges make that possible.

bdog
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Re: Your Employer is About to Drop Your Coverage

Postby bdog » Sat Jun 30, 2012 5:21 am

pjbogart wrote:I learn a lot from Rush Limbaugh, bdog. He's lying 99% of the time so if you just believe the opposite of whatever he says, you'll be right 99% of the time.

As for whether some will gain and some will lose, that's pretty irrelevant to Rush's claim. He's claiming that your employer will drop you because the fine is less than the insurance, but that makes no sense if your employer covered you when there was no fine. And the scenario is only relevant to people who had insurance before the ACA took effect, so essentially Rush Limbaugh's scenario applies to 0% of people.

I'm just saying...the CBO report is the little seed that people like Limbaugh are blowing way out of proportion (and Limbaugh knows that). I can't explain why the CBO says that and it doesn't jibe with your scenario...but there must be some reason.

bdog
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Re: Your Employer is About to Drop Your Coverage

Postby bdog » Sat Jun 30, 2012 5:28 am

pjbogart wrote:
bdog wrote:This is due to changing incentives that I do not understand. I'm just starting to look into what all this is about since it has been green-lighted.


So, were you one of those people who opposed "Obamacare" even though you knew nothing about it? My understanding is that when people are polled as to the specifics of Obamacare, they overwhelmingly support it, other than the mandate. When you just ask them if they like Obamacare, they don't like it. That sounds to me like the problem is ignorance.

For instance, currently health insurance companies spend an average of 40% of premiums on administration, ie advertising, labor, dividends, etc. The ACA requires that health insurance companies spend 80% of premiums on healthcare. Less television commercials, more mammograms. Less CEO pay, more routine physicals. Less dividends, more flu shots.

Do you think that's a bad thing?

I haven't supported it or opposed it. That 80% requirement is a good thing as long as it does not effect the administration of the program. Check that - it will affect the admin of the program. It must not have too big a negative affect.

Does anyone know of a site that is a non-partisan 101 review of the program?


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