The Latest News On Healthcare Reform - HUGE Flaw Discovered in Healthcare Bill!
May 10th, 2010
Source: Michael G. Grace and several other publications
Yes, despite the law being passed there is still a debate and all sides are pulling out the big guns now.
Democrats canceled hearings after learning companies' plans would make health insurance bill look bad.
Several documents obtained by Fortune and published on CNN show that AT&T and other major companies -- including Verizon, Deere and Caterpillar are considering eliminating their employee benefits program. Instead they are more willing to pay a fine to the government for those they employed without insurance. The fine for AT&T would amount to $2,000 per employee, costing the company a grand total of $600 million a year. Maintaining benefits, on the other hand, will cost the company approximately $4.6 billion.
In light of this revelation, Democrats apparently canceled hearings into the companies practices when they received the documents and learned that such hearings might expose a major flaw in their health insurance overhaul.
Instead, Democrats requested documents from the four companies after they announced they were taking massive write-downs to earnings as a result of costs incurred by the bill. Up until the documents were reviewed, Liberals had made accusations that huge firms were overstating costs as a result of the bill, presumably to make it look bad. However, after receiving documents from the companies and reviewing them, Democrats issued a brief memo that the write-downs were "proper and in accordance with SEC rules."
The memo didn't mention they'd received proof that their bill might result in the loss of coverage for millions of Americans.
Verizon commissioned a study examining the effects of various healthcare bills under consideration on their bottom line. The study, prepared by a consulting firm, asserted, "Even though the proposed assessments [on companies that do not provide health care] are material, they are modest when compared to the average cost of health care."
To avoid added costs, the study said, "employers may consider exiting the health care market and send employees to the Exchanges."
Caterpillar and AT&T examined what they believed would be an increase in insurance costs as major drug manufacturers, insurers and medical device makers shifted costs from new taxes they were going to pay onto health insurance clients.
"Caterpillar and AT&T actually spell out the cost differences: Caterpillar did its estimate in November, when the most likely legislation would have imposed an 8% payroll tax on companies that do not provide coverage," CNN's Shawn Tully wrote late Wednesday. "Even with that immense penalty, Caterpillar stated that it could shave $25 million a year, or almost 10% from its bill. Now, because the $2,000 is far lower than 8%, it could reduce its bill by over 70%, by Fortune's estimate."
On the flip side, health insurance companies have argued the penalties for not carrying insurance are too small. They claim that Americans will also decide to pay a fine rather than carry insurance because the fine is cheaper, and they figure they can buy insurance when they get sick (since insurers will be banned from denying coverage based on pre-existing conditions).
None of the companies have confirmed they are actively considering dropping benefits for employees. Many businesses see health and other benefits as important factors in helping them hire and retain talented workers.
"By Fortune's reckoning, each person who's dropped would cost the government an average of around $2,100 after deducting the extra taxes collected on their additional pay," Tully wrote. "So if 50% of people covered by company plans get dumped, federal health care costs will rise by $160 billion a year in 2016, in addition to the $93 billion in subsidies already forecast by the" Congressional Budget Office.
Past articles on Healthcare Reform
Article from 08/12/10
Article from 07/08/10
Article from 06/02/10
Article from 05/10/10
Article from 04/08/10
Article from 03/10/10
Article from 02/24/10
Article from 02/17/10
Article from 02/11/10
Article from 02/4/10
Article from 01/27/10
Article from 01/20/10
Article from 01/13/10
Article from 01/06/10
Article from 11/24/09
Article from 11/19/09
Article from 11/11/09
Article from 11/04/09
Article from 10/28/09
Article from 10/21/09
Back to the latest article