If you’re a business manager or owner that offers health insurance to employees you may think you’re safe from the worst of Obamacare. Well, besides the rising premiums. But you may not be. Chances are you only know what you pay your employees, but not their household income. If the employees’ share of the cost of health insurance is more than 9.5% of their household income you could be hit with fines, er, I mean, new taxes.
As National Federation of Independent Business (NFIB) Director, Federal Public Policy Amanda Austin explains:
“Under the employer mandate provision, there is something called the affordability standard or otherwise known as the ‘mini firewall.’ Employers that are offering coverage and think they are not affected by the employer mandate should think again.
“This firewall allows employees to jump from their employer plan [to the new exchanges] if they pay more than 9.5% of their total household income for their share of the premium. Typically employers do not have access to what employees’ total household income looks like and therein lays the madness.”
Obamacare creates uncertainty about carriers’ participation rate requirements (usually 75%), which could affect group coverage if too many employees drop out. Both employers and employees will each face the potential of penalties if they do not secure creditable coverage.
Thus, employers may resort to snooping on their employees to find out if this is a threat, NFIB’s Austin warns…
@lonelycon What happens when 80% of companies stop the health insurance benefit.
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Isn’t this part of the warning conservatives tried to put forth about Obamacare?
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Yep. And the bad economics news is part of the warning conservatives put forth about progressive policies in general.
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@mitigirl – That’s when obamacare goes “single-payer” – i.e., the government. It’s very obvious that he’s trying to break the system so that he can implement a government-based health care system – one with the efficiency of the post office, the compassion of the IRS, and integrity of every other entity inside the Beltway.
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This entire bill is bad for America. This bill will cause everyone to be put on part employment, premiums go up and businesses to close up. The Dems know only one thing and that is to tax tax and tax again. Look at Maryland. Their governer wants to tax internet, email, sugar, miles you drive and anything else they can tax. This is an attack on capitalism and a deliberate attempt to destroy our country and our currenty. Go watch 2012. You will see where we are heading.
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