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Cancelling Employees Healthcare

Discussion in 'The Okie Corral' started by DanaT, Oct 10, 2013.

  1. DanaT

    DanaT Pharaoh

    This week has been bad news for me from my HR Director.

    She has been dealing with the fallout from Obamacare.

    So a little background. Most of the company's employees are in Germany but also German so this doesnt affect them. However the portion of the company in the USA is considered a small business.

    Although Obama promised that we could keep our insurance and doctors, it seems that BCBS seemed to think otherwise and sent us the letter last month that our insurance plan was cancelled.

    So, the company was forced into the insurance exchange for the USA employees. Well, it seems there are some "catches". First catch, no employee who makes over $50K is eligible for anything over the "bronze" (lowest level) of insurance. For this level, insurance has went from $600/month with BCBS (with a decent plan) to $1400 for almost no coverage.

    So, now we are working with an insurance broker to find us something. His recommendations: drop all health coverage for employees. We are exempt from penalties for FY2014 and they will be small for FY2015. After that, he said it is cheaper to pay the penalties than offer insurance.

    We had the idea of increasing salary by $600 a month to allow them to purchase the same amount we were paying for last year. The broker recommended against this because then FICA, unemployment, workers comp, etc are all tied to this.

    Basically, the advice that we were given is that he would find individual plans for the upper people and then if the employees want the insurance they can pay for that or go on the individual health exchange.

    Basically, we are being told as a business to tell the employees "screw you" and worry about this yourself.

    All of our tax/insurance advisers are telling us to have all employees under $50K as part time (29 hours and under) and then offer no insurance. Anyone making under $25/hr they are saying should have hours cut by 11hrs/week with no possibility of overtime. We are being told it is cheaper to hire extra part time people.

    Over $50K it doesnt seem to matter because that is the "threshold" where the business/individual cant avoid being screwed.

    This is just amazing..
  2. series1811

    series1811 Enforcerator. CLM

    I'm amazed that so many people who voted for Obama and supported Obamacare didn't see this coming.

    How dumb can you be?

  3. He got voted in again, didn't he? :faint: Obviously a lot of people can be more dumb than we give them credit for...

  4. Flying-Dutchman


    Oct 10, 2007
    They were told healthcare would be free.

    Pelosi said free health insurance would allow you to become an artist.
  5. DanaT

    DanaT Pharaoh

    But think about it. They didnt lie. It will be a free for the company. We are cancelling their insurance and in effect lowering their pay.

    Its just not free for employees...
  6. I'm not surprised at all, but so many people are for some reason.

    Currently in 2013 I have very good coverage. I get Health, Prescription, Vision and Dental with great coverage (100% Preventative, most other things covered at 60-80%, prescriptions never cost me more than 20) and for all of it I pay less than 100 a month for just myself.

    I just got married this year, but if I had added my wife (who has her own, pretty good but not as good insurance) the cost per month would have been 250 per month.

    For 2014, all either of our companies are offering are HSA (Health Savings Accounts). Which IMO are terrible. It's pretty much just putting money into a savings account to pay the doctors, the only advantage over doing it yourself is that it's pretax income going in instead of post tax. Granted there is a max out of pocket (of like 6 grand) so the most you'll ever have to spend in a year is 6K. Course the government only allows you to put 3300 into the account per year.

    I've been trying to see what's available on the exchange out of curiosity but they can't even keep the website running.
    Last edited: Oct 10, 2013
  7. zodiacbw


    Apr 3, 2008
    Buford, GA
    I'm reminded of the saying, "Government, if you think the problems we create are bad, wait until you hear our solutions."

    I'm in a similar boat, got a letter from my insurance company saying at the end of 2014, my rates are going to double. The joys of being young and healthy right?
  8. tehan2

    tehan2 NRA & GOAL

    Mar 14, 2006
    Breaking the law in CT
    The company I work for just switched to a voucher system. I didn't pay much attention because I'm covered under my wife's plan. But the people in the meeting weren't happy AT ALL. and I know of a few guys looking for work just because of the change.

    Hope and Change people, Hope, and Change!
  9. Steve0853


    Aug 18, 2003
    North Carolina
    Don't worry Dana. In a few short years, we'll have single payer. That's what Obamacare was designed to so bad that single payer would appear to be our salvation.

    Single payer WILL be free and everyone will love it. Of course, anybody stupid enough to still be working for a living will be taxed at about 80% to pay for it.

    Future High School valedictorians will probably elect to be engineers or mathematicians, anything besides doctors, since working for peanuts after 12 years of rigorous schooling, training, and crushing student loans will not be too appealing.

    With doctor shortages will come it or lump it. The few dummies still working for a living won't even be able to use their wonderful "free" health care.
  10. Nice, just got the results back from the application we put in at the exchange to see if we can find a plan we like better.

    We have to prove that my wife, who was born in Ohio and has a SSN which we gave to them is a US citizen.
  11. TX OMFS

    TX OMFS Right wing nut Lifetime Member

    Mar 30, 2004
    San Antonio, Texas
    QFT. Remember this when your children and grandchildren face something like leukemia.
    Last edited: Oct 10, 2013
  12. ClydeG19


    Oct 5, 2001
    Ray Charles could've seen this coming. I'm sure it's the first of many companies. I have a preexisting condition for which the treatment is expensive. I'm praying my employer doesn't do this.
  13. Mr981


    Dec 27, 2000
    N. Central OH
    An Obamacare horror story--to which I'll add another:

    My wife's best friend is a tech at a vet clinic;she does'nt get paid
    a lot and had her hours cut due to obama car and her minmal
    Health care cover provided by her vet has been cancelled.

    Now she finds out the gov.plan for her will cost $300/month or
    or pay s fine that will be $600/year in 2015.

    So, she's lost her coverage, part of her wages and will end
    uppaying a fine because she csn't afford obamacare.
    BTW--she voted for him.
  14. Jack_Pine

    Jack_Pine CLM

    Feb 3, 2009
    Couple of questions:

    1. The 5k/bronze connection. Is that getting insurance under the company umbrella? I have a friend that makes well north of that and bought a gold policy in CA. He is self employed, though.

    2. I don't think the part time model works for a lot of companies, i.e. non-retail. I can see many taking the penalty and having the employees go to the exchanges.
  15. mgs

    mgs Always Carrying Millennium Member

    Dec 21, 1998
    cogan station, pa, usa
    Unlike Barry from CT......screw those bastards! This is going to get real bad real quick.
  16. M2 Carbine

    M2 Carbine

    Dec 21, 2002
    Hey you obama voters, how's this "Hope and Change" working out for you, you ******* idiots.

    My doctor of many years (and others around here) have said they will take early retirement before they will practice under obamacare. :steamed:

    The least we should do is force obama and the rest of those stinking politicians to have to use obamacare to.
    I'm tired of those rat ******** passing laws and exempting themselves from it.

    Last edited: Oct 10, 2013
  17. arclight610


    Dec 2, 2009
    Somehow Obama will spin this on the companies, saying they aren't following the spirit of the law or some BS like that.
  18. md2lgyk


    Mar 23, 2001
    Aah, yet another benefit of a military career: I have Medicare, TRICARE, and VA benefits. Zerobama can go screw himself (when he's done screwing you).
  19. I have a couple of honest questions, I'm not trying to argue, just looking for clarification:

    What was the reason for the cancellation? BCBS cancelled the policy, not the government, so they had to have given a reason.

    Companies don't use the exchanges. The exchanges are for individuals that don't have coverage through their employers, don't qualify for Medicare/Medicaid, and are unable to afford individual, private health insurance. I'm not sure how a company can be "forced" to use something they can't use.

    I'm going to make a guess at something here, but I highly doubt your coverage through BCBS was $600 a month. That might have been the portion YOU were paying, but what was your employer paying? My health insurance (my share plus my employer's share) was well over that, and my employer was BCBS.

    This is a valid option, but only one that your employer can make. If they decide they'd rather throw you out in the cold and pay the fine, then that's on them.

    BTW, the fine for businesses was supposed to be higher than it is so it was a bigger incentive to maintain coverage for employees. The political right didn't like the additional burden on employees and forced changes to lower that penalty (then refused to vote for it anyway). So, for businesses that find this option attractive, that's because businesses were being protected like this when the law was crafted.

    So, if you're making over $50,000, it would be an undue burden to purchase health insurance? Even with tax breaks to help cover such a circumstance if the employer isn't providing coverage? Or did no one tell you about those breaks because they want you to find someone to blame other than the employer for deciding to save themselves the headache by leaving you to fend for yourself?

    What's amazing to me is that, with all your company is doing to their employees, you're still looking to stand up for them and blame someone else.
  20. So your view is "I already have government health insurance, so I don't give a damn about the rest of you!!!"?

    Sounds like members of Congress, to me.