Friday, October 30, 2009

The End of Private-Sector Family Health Coverage: ObamaCare

The plan will end family-coverage for most people in SE Wisconsin over the next few years.

Employer Mandate Excise Tax (Page 275): If an employer does not pay 72.5 percent of a single employee’s health premium (65 percent of a family employee), the employer must pay an excise tax equal to 8 percent of average wages.

That provision is the one which dooms existing health-insurance companies. Since our Lefty pals can't figure this out, we'll type real slow. Maybe they'll get it. Most likely they won't.

In SE Wisconsin, the average private-sector wage is around $20.00/hour, or about $42K/year. The typical family health premium is around $12K/year. That's about 28% of wages. If the employer is only kicking in 75% of the premium ($9K), that contribution is 21% of wages.

Under ObamaCare (above), an employer must pay a tax of 8% of wages if the employer does not pay 21% of wages in insurance premiums.

Even high-school English teachers should understand that 21%>8%, right?

So. The employer simply drops insurance coverage which costs him 21% (or more) of average wage, and pays the excise tax of 8% of wage instead.

BadaBingBadaBangBadaBoom!!: a reduction in cost-of-employment. And Gummint Health for you, turkey!

The (long) line forms to the Left.

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