Tennessee Governor Phil Bredesen says that employers are quickly realizing that it will be much less expensive to drop their group health insurance plans come 2014 than continue offering such coverage to their employees. Paying a $2000 fine per qualified employee not covered on the employer’s group plan will be one heck of a deal when compared to the current $6000 they spend now. Imagine what the employer will save three years down the road after several more premium rate increases due to Obamacare’s mandates. The employer will also avoid the 40% tax on Cadillac plans.
It is now a waiting game. Once the first large employer announces that they are dropping their group health insurance plan the flood gates will have been opened. To stay competitive every other employer will do the same, forcing millions of families into the exchanges or Medicaid, and the programs awash in more red ink.
This has been the game plan all along of course. Get as many folks as possible to rely on the government for their health care, food, and everything else imaginable, and you have a vote for life in the D column.
Michael Higgins
602.405.8769