One more way Obamacare hurts the American people
A new report shows just how much Obamacare taxes are going to hurt workers. The National Business Group on Health reported this week that companies – in a desperate attempt to avoid a 40 percent “Cadillac Tax” – are looking for ways to shift those costs to consumers.
The tax is slated to be implemented in four years, and will affect plans that spend more than $10,200 per employee. While employees will be given wellness incentives to lower their health care costs, employers are moving toward shifting to plans with higher deductibles or using health savings accounts. Another route employers will likely pursue, according to this report, is hiking costs on spouses who have access to other plans.
All of this spells bad news for employees, who will see more of their paycheck going to pay for health insurance.
Still, this is nothing new. Last year NBC reported on how large companies were already citing the Cadillac Tax as a major reason for scaling back benefits.
One of the main reasons this extra tax was put into the legislation was so it could generate revenue to actually pay for the Affordable Care Act. So while the federal government taxes what they deem to be overly-generous benefit plans, Americans lose quality and affordable coverage. What company would continue to offer generous plans if they’ll be hit with a 40 percent excise tax?
It’s just another way Obamacare is failing the American people. According to reports, companies aren’t waiting until 2018 to scale back benefits; they’re jumping on it now. It’s time for President Obama to realize his signature piece of legislation is hurting – more than helping – the American people.
- 1- Angle, Jim. “Report: Companies desperate to avoid ObamaCare ‘Cadillac tax’ shifting costs to workers” http://www.foxnews.com 14 August 2014.http://www.foxnews.com/politics/2014/08/14/report-companies-desperate-to-avoid-obamacare-cadillac-tax-shifting-costs-to/
- 2- Myers, Lisa and Reynolds, Talesha. “Large employers cite Obamacare ‘Cadillac’ tax in reducing benefits” http://www.nbcnews.com 25 November 2014.http://www.nbcnews.com/news/other/large-employers-cite-obamacare-cadillac-tax-reducing-benefits-f2D11655467