Comments for California Health Insurance Information and News http://www.benefitscafe.com/blog Thu, 22 Apr 2010 04:00:37 -0500 hourly 1 http://wordpress.org/?v=3.1.2 Comment on Small Business Health Insurance Tax Credit – IRS Guidelines by Bruce Jugan http://www.benefitscafe.com/blog/2010/04/02/small-business-health-insurance-tax-credit-irs-guidelines/comment-page-1/#comment-130 Bruce Jugan Thu, 22 Apr 2010 04:00:37 +0000 http://www.benefitscafe.com/blog_news/?p=97#comment-130 Marcus, I disagree with your prediction that the new health insurance tax subsidy will encourage business owners to hold down wages. Personally, I don't think that a tax subsidy of 35% of the employees' health insurance premium is a large enough incentive to create that outcome. My experience with business owners is that those who provide health insurance to their workers, particularly to low wage earners, really care about their employees. In my opinion, the subsidy will help employers partially off-set the high cost of health insurance. Also, in 2014 the subsidy will only have a 2 year duration. Personally, I hope the tax subsidy will not have the dire effect you suggest. However, we'll have to wait and see. Marcus, I disagree with your prediction that the new health insurance tax subsidy will encourage business owners to hold down wages. Personally, I don’t think that a tax subsidy of 35% of the employees’ health insurance premium is a large enough incentive to create that outcome. My experience with business owners is that those who provide health insurance to their workers, particularly to low wage earners, really care about their employees. In my opinion, the subsidy will help employers partially off-set the high cost of health insurance. Also, in 2014 the subsidy will only have a 2 year duration. Personally, I hope the tax subsidy will not have the dire effect you suggest. However, we’ll have to wait and see.

]]> Comment on Small Business Health Insurance Tax Credit – IRS Guidelines by Marcus http://www.benefitscafe.com/blog/2010/04/02/small-business-health-insurance-tax-credit-irs-guidelines/comment-page-1/#comment-128 Marcus Thu, 22 Apr 2010 02:38:18 +0000 http://www.benefitscafe.com/blog_news/?p=97#comment-128 I can't figure how this is a net gain. Employers are incentivized to keep their wages low, and company rolls below a 25 person threshold. If I'm a business owner faced with that situation, the first thing I'm going to want to do is liquidate my mid-range wage earner and replace them with low range wage earners so that I still have the flexibility to keep my top talent incentivized. The next thing I'm going to do is drop my entry level wage from $35k to $25k to further keep that $50k average in check. Ultimately, this reform seems to depress wages. And even worse, it incentivizes employers to keep earnings to themselves instead of offering profit sharing. This seems like a counter-productive reform. I can’t figure how this is a net gain. Employers are incentivized to keep their wages low, and company rolls below a 25 person threshold. If I’m a business owner faced with that situation, the first thing I’m going to want to do is liquidate my mid-range wage earner and replace them with low range wage earners so that I still have the flexibility to keep my top talent incentivized. The next thing I’m going to do is drop my entry level wage from $35k to $25k to further keep that $50k average in check. Ultimately, this reform seems to depress wages. And even worse, it incentivizes employers to keep earnings to themselves instead of offering profit sharing.

This seems like a counter-productive reform.

]]> Comment on Huge Rate Increases in California Small Group Health Insurance January 1, 2010 by Anonymous http://www.benefitscafe.com/blog/2009/11/06/huge-rate-increases-in-california-small-group-health-insurance-january-1-2010/comment-page-1/#comment-2 Anonymous Thu, 28 Jan 2010 21:02:00 +0000 http://www.benefitscafe.com/blog_news/?p=4#comment-2 Hi Bruce - I live in Marin County..my husband and I have an individual PPO Share plan. Jan. 2009 BC notified us of a 35% rate hike. Oct. 2009 they closed our plan to new members. Yesterday, we were notified of another rate hike - this time 40%. That's 75% in one year. the cost of our insurance is now equal to our mortgage - in Marin County, no less. this doesn't count the cost of the plan for our 26 year old daughter, which we still pay. Our total out of pocket is 5k per person, or 10K for both of us...BC blocks most plans, without underwriting. at a higher deductible, our total out of pocket and pharmacy costs are astronomical. Hi Bruce – I live in Marin County..my husband and I have an individual PPO Share plan. Jan. 2009 BC notified us of a 35% rate hike. Oct. 2009 they closed our plan to new members. Yesterday, we were notified of another rate hike – this time 40%. That's 75% in one year. the cost of our insurance is now equal to our mortgage – in Marin County, no less. this doesn't count the cost of the plan for our 26 year old daughter, which we still pay. Our total out of pocket is 5k per person, or 10K for both of us…BC blocks most plans, without underwriting. at a higher deductible, our total out of pocket and pharmacy costs are astronomical.

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