Another job-killing Obamacare fee arises
The hits keep coming and they don’t stop coming . . . and not in a good way.
Your medical plan is facing an unexpected expense, so you probably are, too. It’s a new, $63-per-head fee to cushion the cost of covering people with pre-existing conditions under President Obama’s health care overhaul.
The charge, buried in a recent regulation, works out to tens of millions of dollars for the largest companies, employers say. Most of that is likely to be passed on to workers.
Of course it is going to be passed on to workers. Workers and consumers. When costs of doing business go up, businesses raise the price for their goods and services, or they reduce wages. They have to have some margin of positive profit or they go out of business. That’s how things work in the real world (as opposed to the faculty lounges where self-important professors concoct these ridiculous schemes).
Employee benefits lawyer Chantel Sheaks calls it a “sleeper issue” with significant financial consequences, particularly for large employers.
“Especially at a time when we are facing economic uncertainty, [companies will] be hit with a multimillion-dollar assessment without getting anything back for it,” said Mr. Sheaks, a principal at Buck Consultants, a Xerox subsidiary.
Based on figures provided in the regulation, employer and individual health plans covering an estimated 190 million Americans could owe the per-person fee.
Obamacare is a maze of delayed provisions, hidden taxes, and surprise regulations. It is an ever-unfolding nightmare. We passed it, and now we are slowly seeing what is in it.
The Obama administration says it is a temporary assessment levied for three years starting in 2014, designed to raise $25 billion. It starts at $63 and then declines.
Obamacare is truly a Frankenstein monster, and thanks to the unfortunate choice that America made on November 6th . . . . It’s alive!