via Sean Hannity Discussion by donesprague on 3/1/12
I see that after 2014, the government is mandating that employers with over 50 employees must provide health care cost coverage or pay a fine. The health care cost coverage is not insurance in the typical sense. It is a portion of the pay from the employer to the employee that is used to cover health cost. Thus, the government is mandating the form of compensation an employee receives from an employer of over 50 people. The employer and employee do not have a choice about a portion of the pay or compensation for work. The employee compensation must include health care cost coverage as part of the employee pay; and, the health care cost coverage must meet government approved standards. Employer Penalties for Not Offering Any Coverage - Beginning in 2014, a company with more than 50 full-time employees that does not offer coverage and has at least one full-time employee receiving an individual tax credit must pay an annual penalty of $2,000 per full-time employee, Employer Penalties for Offering "Unaffordable" or "Unqualified" Coverage - Beginning in 2014, a company with more than 50 employees that offers coverage that is "unaffordable" will pay the lesser of $3,000 per year for each employee receiving or $2,000 per year for each full-time employee. Simply put, an employer that does not provide health care cost coverage for employees must pay a fine of $2,000 per employee per year. Thus, the employer would reduce the employee compensation by $2,000 per year. The government would get the $2,000 per year per employee instead of the employee.
Example 1 - employee without company provided health cost coverage. $40,000 = annual pay to employee from employer
$0.0 = annual employer compensation to employee for health care cost coverage plan. $40,000 = total annual employee compensation.
$40,000 = total annual employer budget per employee. Example 2 - Employee with company provided health cost coverage. $34,000 = annual pay to employee from employer
$6,000 = annual employer compensation to employee for health care cost coverage plan. $40,000 = total annual employee compensation.
$40,000 = total annual employer budget per employee. Before the government mandate, could a company with over 50 employees pay an employee as in example 1? Or, was an employer required to pay an employee as in example 2? After the government mandate, can an employer pay an employee as in example 1? What did the laws say about employers compensation to employees before the government imposition of the health cost coverage compensation an employer must pay employees? I have not found prior laws that specified the employer must provide benefits other than pay. Can anyone shed light on prior laws dealing with government control of employer compensation to employers before the last government mandate.
How will an employee pay be impacted when health cost increases? Politicians admit that the cost of health care increases because some people are not paying for coverage. The cost must be covered by someone so the payers get higher prices to cover cost of the non-payers. The government mandates from the legislation Romney and Obama signed includes provisions to get some of the people who don’t pay to begin to pay even though they don’t seek health care.
Example 3 - after health care cost increase $1,000 per year with employer balanced budget $33,000 = annual pay to employee from employer ($34,000 - $1,000 = $33,000)
$7,000 = annual employer compensation to employee for health care cost coverage plan. $40,000 = total annual employee compensation.
$40,000 = total annual employer budget per employee. Example 4 - after health care cost increase $1,000 per year with employer UN-balanced budget
$34,000 = annual pay to employee from employer
$7,000 = annual employer compensation to employee for health care cost coverage plan. $41,000 = total annual employee compensation.
$40,000 = total annual employer budget per employee.
$1,000 = company budget overrun per employee.
If the employer is to compensate the employee a total of $40,000 and if health cost increases, will the employer be able to run with a balanced budget in example 3 or will the government require a company to run with budget overrun resulting in an unbalanced budget?
Example 5 - Employer that ends health care coverage program with government mandate $38,000 = annual pay to employee from employer
$2,000 = annual employer fine for not providing health care cost plan $38,000 = total annual employee compensation.
$40,000 = total annual employer budget per employee. Will an employer be able to end their health care program and have a payout as in example 1; or, will the government take part of the employee compensation as in example 5?
Would it be better to allow the employer and employees to come to agreement on the form of compensation without government intrusion?
Example 1 - employee without company provided health cost coverage. $40,000 = annual pay to employee from employer
$0.0 = annual employer compensation to employee for health care cost coverage plan. $40,000 = total annual employee compensation.
$40,000 = total annual employer budget per employee. Example 2 - Employee with company provided health cost coverage. $34,000 = annual pay to employee from employer
$6,000 = annual employer compensation to employee for health care cost coverage plan. $40,000 = total annual employee compensation.
$40,000 = total annual employer budget per employee. Before the government mandate, could a company with over 50 employees pay an employee as in example 1? Or, was an employer required to pay an employee as in example 2? After the government mandate, can an employer pay an employee as in example 1? What did the laws say about employers compensation to employees before the government imposition of the health cost coverage compensation an employer must pay employees? I have not found prior laws that specified the employer must provide benefits other than pay. Can anyone shed light on prior laws dealing with government control of employer compensation to employers before the last government mandate.
How will an employee pay be impacted when health cost increases? Politicians admit that the cost of health care increases because some people are not paying for coverage. The cost must be covered by someone so the payers get higher prices to cover cost of the non-payers. The government mandates from the legislation Romney and Obama signed includes provisions to get some of the people who don’t pay to begin to pay even though they don’t seek health care.
Example 3 - after health care cost increase $1,000 per year with employer balanced budget $33,000 = annual pay to employee from employer ($34,000 - $1,000 = $33,000)
$7,000 = annual employer compensation to employee for health care cost coverage plan. $40,000 = total annual employee compensation.
$40,000 = total annual employer budget per employee. Example 4 - after health care cost increase $1,000 per year with employer UN-balanced budget
$34,000 = annual pay to employee from employer
$7,000 = annual employer compensation to employee for health care cost coverage plan. $41,000 = total annual employee compensation.
$40,000 = total annual employer budget per employee.
$1,000 = company budget overrun per employee.
If the employer is to compensate the employee a total of $40,000 and if health cost increases, will the employer be able to run with a balanced budget in example 3 or will the government require a company to run with budget overrun resulting in an unbalanced budget?
Example 5 - Employer that ends health care coverage program with government mandate $38,000 = annual pay to employee from employer
$2,000 = annual employer fine for not providing health care cost plan $38,000 = total annual employee compensation.
$40,000 = total annual employer budget per employee. Will an employer be able to end their health care program and have a payout as in example 1; or, will the government take part of the employee compensation as in example 5?
Would it be better to allow the employer and employees to come to agreement on the form of compensation without government intrusion?
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