At Work

Employers wont be jumping for joy, but don’t burst Sen Warren’s bubble

A quote from the Wall Street Journal 11-1-2019

Com­pa­nies that already pay some employee health costs and have more than 50 employees would make an “Em­ployer Medicare Con­tri­bu­tion” to the gov­ern­ment, a fee to be de­ter­mined by prior health-care costs to insurance firms. Gen­erally speak­ing, those who are self-em­ployed would be exempt from this tax, which Ms. War­ren promised would be less than companies currently pay in pay­ments to in­sur­ers.

Somebody should tell the Senator that about 26,000 employers covering approximately 50,000,000 Americans do not make payments to insurers, they are self-insured. Their costs are based not on premiums, but on the health care services used by their workers and their families.

These employers design their plans, decide plan provisions and manage costs. There is no profit for insurance companies based on claims paid and generally their employees are healthier than the general population.

All that means that when there is one big risk pool of Americans, these employers, if they are carrying the bulk of the cost through taxes, will likely pay more, perhaps much more than they do now, especially considering the array of added benefits….. and they lose all control over increasing taxes‼️

Categories: At Work, Healthcare

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6 replies »

  1. If I was an employer of more than 50 people but less than the number that could afford to be self-insured, I would eliminate my employees health insurance if Warren gets elected. When the time comes to pay the “fee” to the government what I have paid toward the insurance companies, I would go, I have paid nothing so I owe nothing.

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  2. Thank you for this post, Mr. Quinn. And particularly for the link to the DOL report to Congress.

    I’ve known about these types of approaches to providing employee health coverage for quite some time. I was “Self-Insured” myself under my own business. But I was not aware that these self/mixed insurance mechanisms were so widespread nor that they covered this number of people. I’d have thought much closer to 10% of these numbers – on both counts. Great information.

    And to the point of your post here, I suspect the only numbers in this report that Elizabeth Warren even cares about are the $84 Billion and $135 Billion in assets currently held in the Self and Mixed insurance pools, respectively. As far as Elizabeth is concerned, that’s all HER money!

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    • Heh, heh – Good question, Mik.

      But actually, they are all very, very smart. So smart in fact, they fully believe that the American voting public, in total, has vastly less than half-a-brain (relative to theirs) – and desperately needs their Democrat “smarts” to do all Americans’ thinking for them.

      I do hope they’re wrong. And I guess we’ll see in about a year.

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