If You Like Your Employer Health Care Plan, You WILL Keep It

Actually, it doesn’t matter whether or not you like your employer health care plan, you WILL keep it. Earlier this month, the Obama administration’s IRS issued a ruling that prevents employers from moving their employees to one of the new health insurance exchanges and giving them a tax-free contribution to help them pay the premiums.

Such arrangements do not satisfy the health care law, the administration said, and employers may be subject to a tax penalty of $100 a day — or $36,500 a year — for each employee who goes into the individual marketplace.

Many employers — some that now offer coverage and some that do not — had concluded that it would be cheaper to provide each employee with a lump sum of money to buy insurance on an exchange, instead of providing coverage directly.

In other words, the business-friendly Obama administration is sticking it to small business once again. And to you, as well: if you were thinking that maybe you could get a better insurance policy than your employer offers, either through an exchange or going straight to the insurer you can do that – but it’s going to come completely out of your pocket in after-tax cash.

With this ruling, the Obama administration makes clear that they intend to leave no tern unstoned in an effort to force employers to keep their employees in group health insurance plans; the very ones that flack Jay Carney derisively referred to as “crummy”.


About maxredlines

experience: biology, zoology, psychology. authored/co-authored papers appearing in peer-reviewed scientific journals, as well as numerous professional proceedings. authored articles appearing in computer-oriented publications. featured in publications ranging from books to New Yorker magazine to television.
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