Anthony Martin
Conservative Examiner
5/5/2010
In a stunning revelation Wednesday, several top U.S. corporations are seriously considering dropping employee health insurance coverage in light of what they see as the inevitable consequence of ObamaCare–skyrocketing costs.
The companies state that after their legal experts poured over the thousands of pages in the new law, it will cost them less to pay the fines for not providing healthcare coverage for employees than continuing to provide employer-paid health insurance benefits.
As a side-note to the announcement, the companies maintain that ObamaCare will result in a dramatic increase in expenses for providing employee coverage, with added costs skyrocketing to multi-billions of dollars.
According to Business Record:
Additionally, the penalties to businesses for not offering coverage are less expensive than the cost of providing insurance, she said. “But for those that aren’t providing coverage now, this is a huge burden to them. And for employers that have a lot of employees working 30 hours (the threshold to be considered full- ime), you may have a lot of businesses cutting them back to 29 hours.”
Business Record maintains that despite this fact most companies will probably try to continue to provide coverage.
But a report issued today in Fortune Magazine and reported by CNN indicates that the dire warnings of ObamaCare critics concerning the consequences of approving the costly legislation are in fact well-founded.
The report points to internal documents from AT&T, Verizon, John Deere, and several other large corporations which show that executives are, in fact, looking at the option of dropping healthcare coverage for employees due to what they are sure will be unsustainable increases in costs. These costs will be so prohibitive that it would benefit the corporations to pay the government fines instead…
The article continues at the Examiner.
