A physicist, a chemist and an economist are stranded on an island, with nothing to eat. A can of soup washes ashore. The physicist says, “Lets smash the can open with a rock.” The chemist says, “Let’s build a fire and heat the can first.” The health care policy analyst says, “Lets assume that we have a can-opener…”
April 9, 2010:
Why Most Firms Won’t Drop Employee Health Insurance
“I’ve been ‘unofficially’ told by the H.R. manager of my employer,” wrote RG from Los Angeles, “that it will be cheaper for them to take the penalty than to continue insuring us.” RG’s question — whether it was true that “many, many companies will start dumping health insurance benefits” — was one of several we fielded last week about how the new health care reform law would affect small businesses. And though this query came from an employee, not an owner, of a large company, not a small one, clearly many entrepreneurs are also worried that they’ll have to abandon group coverage.
But as we’ve reported before (here and here), health policy analysts have told The Agenda that this massive dumping scenario is pretty unlikely. The fact is that most businesses that provide insurance for employees will continue to do so.
“The Edsel is here to stay.”– Henry Ford II, December 7, 1957.
May 7, 2010
Four companies mulled dropping health insurance plans
Four large companies have weighed dumping their employees’ insurance plans and paying a penalty to the federal government under the new health care law, a move that would be a substantial blow to the Democrats’ health care overhaul.
AT&T, Verizon, Caterpillar and John Deere all prepared internal documents as the legislation was being considered that compared the costs of keeping coverage or paying the penalty, according to Fortune magazine.
I predict the following is a glimpse into the future.
July 18, 2010
The relentlessly rising cost of health insurance is prompting some small Massachusetts companies to drop coverage for their workers and encourage them to sign up for state-subsidized care instead, a trend that, some analysts say, could eventually weigh heavily on the state’s already-stressed budget.
Since April 1, the date many insurance contracts are renewed for small businesses, the owners of about 90 small companies terminated their insurance plans with Braintree-based broker Jeff Rich and indicated in a follow-up survey that they were relying on publicly-funded insurance for their employees.
In Sandwich, business consultant Bill Fields said he has been hired by small businesses to enroll about 400 workers in state-subsidized care since April, because the company owners said they could no longer afford to provide coverage. Fields said that is by far the largest number he has handled in such a short time.
“P.A.S. Franklin, Vice President of the International Mercantile Marine Company, said this morning that…there was no cause for alarm regarding the safety of the passengers or the ship, as they regard the Titanic and being practically unsinkable…The Titanic is well able to withstand almost any exterior damage and could keep afloat indefinitely after being struck…Franklin was most emphatic in his assurances regarding the safety of the passengers and the steamer.”
– Press release by the International Mercantile Marine Company which owned Titanic’s White Star Line, April 15, 1912. (The ship had already gone down with 1,500 passengers.)
State officials said they have not seen convincing evidence that there is a trend.
“We could use up all the proven reserves of oil in the entire world by the end of the next decade.”– President Jimmy Carter, 1972.
Come 2014, when the bulk of the federal health care law goes into effect, the penalties for small companies that do not provide health insurance coverage will be less onerous than those in Massachusetts. That could tempt more small companies to opt out nationally, sending more workers to the public rolls — if health care costs can’t be restrained, some analysts said.
“Make no mistake, we are headed in the right direction.” – Barack Obama July 2, 2010
DrJohn has been a health care professional for more than 40 years. In addition to clinical practice he has done extensive research and has published widely with over 70 original articles and abstracts in the peer-reviewed literature. DrJohn is well known in his field and has lectured on every continent except for Antarctica. He has been married to the same wonderful lady for over 45 years and has three kids- two sons, both of whom are attorneys and one daughter who is in the field of education.
DrJohn was brought up with the concept that one can do well if one is prepared to work hard but nothing in life is guaranteed.
Except for liberals being foolish.
Are you suggesting that the Government DOESN’T know best? But, they’re the smartest people on EARTH that know how to run EVERY business in EVERY sector!!!! Just ask them…….That’s why the regulate everything, because they know BETTER than you.
🙄
Awesome! Dr. John!
Higher taxes, loss of my company health insurance, higher electric and gasoline costs, possible loss of my job in the energy field, voting rights blocked by racists, more danger to terrorism, union intimidation to join, etc., etc., etc.
Excellent juxtapositions!
Wow! Great writing, Dr. John!