Paychecks to Shrink Because of Higher Health Premiums, U.S. Companies Say

[marmar]

By Jeffrey Young


Aug. 18 (Bloomberg) -- Workers will pay more for their health care next year as U.S. companies prepare for provisions of the overhaul signed into law by President Barack Obama, according to a survey released today.

About 63 percent of businesses plan to make employees pay a higher percentage of their premium costs in 2011, said the Washington-based National Business Group on Health, which surveyed 72 companies that employ more than 3.7 million people. The survey showed 46 percent plan to raise the maximum level of out-of-pocket costs that workers must bear.

The companies surveyed expect their costs of health-care benefits to rise an average of 8.9 percent next year. The legislation Obama signed in March will contribute an estimated 1 percentage point to the higher expense, Helen Darling, the business group’s president, said at a press conference in Washington today. Employee-paid portions may see small increases, she said.

“They’re usually very small increments,” Darling said. “It could be as little as 1 percent.”

Employers may be using the health-care law as cover for changes they already planned to make to their benefits, said Igor Volsky, a health-care researcher at the Washington-based Center for American Progress, which supported the overhaul. ..........(more)

The complete piece is at: http://noir.bloomberg.com/apps/news?pid=20603037&sid=avQtmizfD1Ww

[AlabamaLibrul]

1. I thought the reason this was a BFD is it bends the cost curve... upwards? n/t

[Stinky The Clown]

2. I nominate Bloomberg for the Partisan Hit Job Desiguised As News award.

First, the fact: employees may well be asked to pay higher percentages of their premiums.

Unstated fact: the 8.9% cost increase to employers is lower than years past.





I am openly unhappy with Obama's health care plan. But I try to represent it for what it is. This piece seems written to have a political effect.

[marmar]

3. Well it IS Bloomberg, guardian of Wall Street's plunderers.....

nt

[mdmc]

4. I have to jump through hoops to keep my increases small

We have been told that there will be "massive" co-payment increases in the next year.
In order to "reduce" some of these huge increases, we have been asked to do the following-
1. Stop smoking (sign a statement, take a class)
2. Do a "bio-metric" screening
3. Track our daily exercise
4. something else - I forgot what else we need to do.

If you do all 4 things, you will have a smaller increase then an employee that does none of these things.

[Vinca]

5. The biggest boon to U.S. business would be government-sponsored

health coverage paid for by taxation. I'll never understand why the idiot Chamber of Commerce continues to only represent big insurance interests.

[raccoon]

6. That's if you're lucky enough to have health insurance through your employer.

I haven't for nearly 20 years, and I know I've got plenty of company.

[zipplewrath]

7. I predicted this

"Employers may be using the health-care law as cover for changes they already planned to make to their benefits..."

The business community will use HCR as an excuse for every cost adjustment for the next 4 years at a minimum. Never mind that costs have been rising for decades.

[MadMaddie]

11. Not only rising for decades but rising at unprecedented rates.

So much so that companies have dropped Healthcare for employees.

No one talks about it.

[Gormy Cuss]

13. You and many others predicted this.

Of course businesses will use it as an excuse. That's one reason why allowing so much lead time before full implementation was a bad idea.

[Bandit]

8. Who can blame business for that?

Why should business be responsible for employee's health insurance in the first place. When business first started offering Health Care Insurance it was a bonus to their employees and now it has become such a burdon upon business as to put many out of business. It is not the responsibility of business to buy anyone insurance. The Health and Welfare of the nation is the ONLY purpose of government..

[leftofcool]

9. But thank goodness many businesses do provide it

otherwise we would not be able to the pay the 1600 a month insurance costs for my cancer health.

[Hannah Bell]

15. corporations *willingly* offered health care to their employees to reduce the potential for strikes,

etc. -- back when they were organized such that they didn't have a lot of options if a plant shut down. It wasn't a *bonus*.

now that they can just transfer production between lots of smaller facilities at the drop of a hat, they're dumping it.

the implication in your post, that corps were doing people some kind of big *favor* is ridiculous. Corps *fought* a national healthcare because it would have made it too easy for workers to quit.

[cbdo2007]

10. Hasnt this been happening for years?

I remember a few years ago my company changed plans and got us better benefits so they charged us a little bit more for it.

[SocialistLez]

12. I am sure they were going to shrink anyway

so we can compete with Chinese, Indian, Bangladeshi, etc. labor.

[mdmc]

14. ..

[lib2DaBone]

16. We need to get away from Employer based health care...

for the benefit of the employees (as well as the companie).. we need single payer or a public option.