Dec 08 2010
Obamacare Truly A Disaster
Want proof Obamacare is a disaster? Just look at how many people would be losing their good health care if it was actually being enforced:
The Obama Administration has quietly granted even more waivers to one provision of the new federal health reform law, doubling the number in just the last three weeks to a new total of 222.
One of the more recognizable business names included on the newly-expanded list of waivers issued by the feds is that of Waffle House, which received a waiver on November 23 for health coverage that covers 3,947 enrollees.
Another familiar name was that of Universal Orlando, which runs a variety of very popular resorts in the Orlando, Florida area. Universal was given a waiver for plans that cover 668 workers.
These waivers deal with limited health benefit plans, sometimes referred to as “mini-med” policies, which companies as large as McDonald’s use for some its employees.
The plan have limits on how much can be paid out in coverage, limits which would be phased out under the new health reform law.
The feds though have granted waivers from that law, amid concern that certain groups would drop their health insurance programs entirely. Those waivers are good for one year, and can be considered for renewal.
These companies have the money and clout to get waivers. Most small companies (like ours) do not have the ability. We seriously are considering which is less dangerous to us, keeping our top end policies (we need to attract dwindling engineering talent) or not. We cannot afford penalties on top of premium benefits. We are not (and will not) become a union run shop. That leaves us only two horrible options.
Which is the truth of Obamacare. What was once a good health care plan is now either dangerous to our company or something we must toss out in favor of government-rationed care. And for this I am to be grateful?
And the most insidious effect of this is that only companies with strong govm’t connections and are big enough to have clout can get these exemptions. Small companies, the most important sector for new job creation, don’t have a chance.
And that’s why big companies don’t really mind these rules – it helps them stomp out all of their smaller, more nimble competitors.
It also means only those companies which are careful to stay closely aligned with the current Government survive, while those who do not can be easily eliminated through the bureacracy.
Hmm, what form of government is the one which forces private business to ally themselves with Government policies or be eliminated? I’m sure there’s a name for that, I wonder what it is…
I was wondering if the trend over the coming years (if ObamaCare does not get blown to smithereens by the courts and/or a Republican Congress) will be to have few or now statuatory employees but instead employ temps or contractors (1099.) Basically, by outsourcing the employee to the temp staffing company, an employer can put a lid on the costs to some extent and be able to add and subtract workers as needed. By going the 1099 route, the employer can do away with all responsibility for tax witholding, benefits, etc. and could escape the entanglements of government BS like ObamaCare.
I don’t know the specifics of your business and am not suggesting you should consider doing either of these. I am suggesting that we might see increased use of these alternatives as a way for many businesses to ameliorate a lot of the government interference coming down the pike. Temp staffing and use of contractors has been on the rise for a number of years already and the trend may soon accelerate.
Wilbur, from what I can see we’re already there.