PDA

View Full Version : Deeman...your input please



pooltchr
03-26-2010, 01:17 PM
Deere & Co. and Caterpillar Inc. said they were expecting a combined $250 million in charges this year as a result of changes to the $2.5 trillion U.S. healthcare system that President Barack Obama signed into law this week.


Deeman,
I am not asking for you to share propriatory information, but based on your intimate business knowledge, can we espect similar reports coming from other large employers this quarter?

Steve

Deeman3
03-26-2010, 01:46 PM
Steve,

We are now negoiating our next years rates. They have now said, "Hold on, we have to factor in the additional charges for a few of the early starters here." Now, they didn't say they would be lowering costs but I won't know for sure how much will be normal increases, we expected a 9% increase, and how much HCR will add.

As soon as I know, I'll, of course, share that. It would be unfair to say they are going up and how much because of HCR before I see the final numbers in about a week.

I do know, two of the smaller suppliers here are dropping their coverage for employees (the insurance rep. told me) because the fine will be less than the cost is even now.

Stay Tuned!

sack316
03-26-2010, 01:48 PM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Deeman3</div><div class="ubbcode-body">

I do know, two of the smaller suppliers here are dropping their coverage for employees (the insurance rep. told me) because the fine will be less than the cost is even now.

Stay Tuned! </div></div>

I've also heard this from a few places. That it looks like it will be the better financial move to pay a penalty than it would be to give coverage. Of course some of us have been saying that will be the case for some time.

Sack

Deeman3
03-26-2010, 01:53 PM
Theoretically those fnds will be used to insure non-workers and parasites but they can use them for discretionary things like they did for social security. Much will be used for policing and enforcement of the new laws. New IRS agents, etc.

pooltchr
03-26-2010, 02:02 PM
Which would lead one to believe that the amount of money being paid in fines would be less that what is being paid for coverage for all those employees.
If a business can pay 50,000 to pay for benefits, or 10,000 in fines each year, where does the other $40,000 come from?

Any idea who will have to make up the difference???

Steve

Deeman3
03-26-2010, 02:59 PM
Anyone making over $250K per year. /forums/images/%%GRAEMLIN_URL%%/smile.gif It may be a shame if it becomes a simple cost analysis but many companies are really under the gun these days. The smaller companies, less than 50 people can just bail but the larger ones will be hit by 8 percent, with most HC plans requiring between 12 and 28%.

Who knows. I have a firm committment that we will only reduce the benefits not increase costs so we'll see where that goes. Right now, we have as good coverage as I have ever had, including my days at GM but, of course, we have a much younger work force here.

eg8r
03-26-2010, 03:44 PM
I have heard from quite a few small business owners here in Florida that have said it is cheaper to pay the fines then pay for the coverage.

eg8r

Deeman3
03-26-2010, 04:11 PM
It may be that is what the government is looking for. First, if a major part of the insurance companies fail, that will open the door for single payer government run service. Of course, that would depend on if the dems were still in control by the time it all comes apart. If not, the primary insrance comapnies would restructure and millions more than mnow, left out in the cold. If they are still in a big majority, they could then converty to a full socialist system like Cuba.

This all may work out just fine. I don't know. The numbers are certainly not there, in reality for it to work unless we bleives for the very first time in history, government will live up to it's cost estimates and hold up the cost savings despite political pressures. Even the Dems know this is a long shot but, of course, the people in power are not going to be the ones they hurt, it will be the middle class and if they go under, all those persons getting "Free" health care won't be supportable.

By then, they can try and blame it on Bush. /forums/images/%%GRAEMLIN_URL%%/smile.gif

pooltchr
03-26-2010, 05:40 PM
As always, we only need to follow the money.
We have been told the insurance industry is making outrageous profits.
We know the government needs money.
Maybe they think if they take over the insurance industry, they can make all that money rather than letting it get into the hands of the evil private big business.

Steve