Reason.com posted an email by a small business who is dealing with Obamacare. The whole post is worth reading, it explains why we have a system in which health care is tied to our jobs. But showing the reality of the effects of a law intended to “give everyone insurance”, he writes:
Health benefits are our third highest cost, after payroll and search ads, but now more than our rent. A 28% increase is significant. We essentially have four options:
1) Keep the exact same CareFirst plan, and have Capterra swallow the cost. Individuals currently pay 0% of their premiums (which are around $500/month) but families pay 25% (of their $1500 monthly premiums). So the families would also pay more for their 25% share. The higher cost for Capterra would reduce our ability to hire, give raises, etc.
2) Keep the exact same CareFirst plan, and start charging both individuals and families 25% of the premiums. (Most companies, yes even Google, that provide health insurance benefits to their employees have them pay 25-50% of their monthly premiums.)
3) Keep CareFirst but subscribe to a cheaper plan that includes an in-network deductible. This basically means if you ever visit your doctor, you will be paying the first 1k or whatever the deductible is in expenses that year.
4) Switch to a different top tier plan from a a different insurance provider such as United that for whatever reason has not increased their premiums yet and not change anything (yet) about how we pay for everyone’s insurance.
5) Stop paying heath care benefits, pay people cash instead and encourage everyone to do health savings accounts (they are not taxed!) and buy catastrophic plans with part of the cash. More on this later.
The cost is already vastly exceeding what proponents have predicted, and the lie that everyone could keep their previous health insurance has been proved fraudulent. The real question is when the nation will start listening to those who make accurate predictions instead of those who make lousy predictions.
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