Employer Contributions to Health Care
How do the major stakeholders feel about employer contributions to health care? At present, one of the major expenses for companies, large and small, is health care for their employees - it is so prohibitively expensive that small business in some cases cannot offer insurance to their employees, putting them at a clear competitive disadvantage in the race for talent.
Even large companies take a large hit.
Health insurance reform is goaled to bring down the costs for care, across the board.
But how will employers be affected? It depends upon which version of the bill eventually passes.
The House: Employers with annual payrolls of over $250,000 would need to contribute 72.
5% of premium costs for individuals (65% for families); if they fail to do so, they must contribute 8% of wages in payroll taxes (a smaller percentage for those with lower annual payrolls).
There are exemptions for companies with lower payrolls (one committee proposal exempts companies with payrolls under $500,000, for example) and exemptions for employers who can show that providing health insurance at that level would lead to job losses.
The Senate: The Senate's more straightforward options requires employers with more than 25 workers (regardless of payroll) to contribute at least 60% of the premium costs or pay penalties (on a sliding scale dependent on full time or part time workers).
Another option that is being discussed would not require employer contributions-but requires subsidies (to cover low-wage workers) from any employer who does not provide coverage.
The President: President Obama's concern is for the crippling effect employer mandates could have on small business-one of his biggest areas of focus.
He has advocated exemptions for small businesses as a result.
Interest Groups: The interest group most heavily involved here are the various business lobbies.
Wal-Mart (the largest private employer in the country) actually came out in support of the idea of large companies insuring their employers, with the caveat that they should not be forced to pay for the portion of employers health care currently covered by Medicare.
Obviously, businesses large and small will be affected by the new policies; as with the rest of the country, they will benefit from reforms that lower overall costs, as they are most responsible for shouldering those costs.
Even large companies take a large hit.
Health insurance reform is goaled to bring down the costs for care, across the board.
But how will employers be affected? It depends upon which version of the bill eventually passes.
The House: Employers with annual payrolls of over $250,000 would need to contribute 72.
5% of premium costs for individuals (65% for families); if they fail to do so, they must contribute 8% of wages in payroll taxes (a smaller percentage for those with lower annual payrolls).
There are exemptions for companies with lower payrolls (one committee proposal exempts companies with payrolls under $500,000, for example) and exemptions for employers who can show that providing health insurance at that level would lead to job losses.
The Senate: The Senate's more straightforward options requires employers with more than 25 workers (regardless of payroll) to contribute at least 60% of the premium costs or pay penalties (on a sliding scale dependent on full time or part time workers).
Another option that is being discussed would not require employer contributions-but requires subsidies (to cover low-wage workers) from any employer who does not provide coverage.
The President: President Obama's concern is for the crippling effect employer mandates could have on small business-one of his biggest areas of focus.
He has advocated exemptions for small businesses as a result.
Interest Groups: The interest group most heavily involved here are the various business lobbies.
Wal-Mart (the largest private employer in the country) actually came out in support of the idea of large companies insuring their employers, with the caveat that they should not be forced to pay for the portion of employers health care currently covered by Medicare.
Obviously, businesses large and small will be affected by the new policies; as with the rest of the country, they will benefit from reforms that lower overall costs, as they are most responsible for shouldering those costs.
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