Categorized | Health

The Cost of Democare

The AP writes today, “The health care overhaul will cost U.S. companies billions and make them more likely to drop prescription drug coverage for retirees because of a change in how the government subsidizes those benefits. In the first two days after the law was signed, three major companies — Deere & Co., Caterpillar Inc. and Valero Energy — said they expect to take a total hit of $265 million to account for smaller tax deductions in the future.”

Ironically, President Obama travelled to Iowa yesterday to promote his unpopular $2.6 trillion health care takeover just after the announcement from John Deere.  The Des Moines Register noted that Deere is “Iowa’s largest manufacturing employer.”

At a time when unemployment is 9.7%, this health care bill offers major new burdens for employers. Indeed, the New Hampshire Union-Leader’s John DiStaso wrote yesterday, “[New Hampshire’s] seasonal tourism industry is only now beginning to realize that it could get hammered by the new health care reform law.” DiStaso explains, “The bill signed into law on Tuesday by President Barack Obama fines businesses that do not provide health insurance to full-time employees who work more than 120 days a year. The assessment is $2,000 per employee, which, according to SkiNH lobbyist Bruce Berke and group president Alice Pearce, could mean as much as $1 million in fines to the big ski resorts, some of which hire as many as 500 seasonal workers.” And in Colorado, Steamboat Ski and Resort Corp. President Chris Diamond told the Steamboat Pilot, “The potential impact to Colorado Ski Country member areas is somewhere between $9 million and $14 million in penalties (per year) . . . . It’s a stunning blow to any large employer like ours that employs seasonal staff.”

The AP reports, “‘You’re increasing the incentive for companies to say “We don’t want to be in the health care business any more,”‘ said James Gelfand, senior manager of health policy for the U.S. Chamber of Commerce, which fought the overhaul. American industrial companies that are struggling to compete globally against companies with much lower labor costs are particularly likely to eventually drop retiree coverage, said Gene Imhoff, an accounting professor at the University of Michigan.”

Further, according to the AP, “As many as 1.5 million to 2 million retirees could lose the drug benefits provided by their former employer because of the tax changes, according to a study by the Moran Company, a health care consulting firm.”

Democrats were warned of this back in December, but plowed ahead anyway: “Deere and Caterpillar were among a group of 10 companies that sent a letter to congressional leaders in December warning of the cost increases. The others were Boeing Co., Con-Way Inc., Exelon Corp., Navistar Inc., Verizon, Xerox Corp., Public Service Enterprise Group Inc. and MetLife Inc. . . . The companies that signed the December letter warned that changing the way retiree drug benefits are subsidized would have a broad impact on the economy, and there are already indications that the effects will trickle down to individuals.”

We’re only beginning to see the negative consequences for business, for individuals, for the economy, and for our health care from this ill-considered and ideological health care bill.  It needs to be repealed and replaced.

About Tom White

Tom is a US Navy Veteran, owns an Insurance Agency and is currently an IT Manager for a Virginia Distributor. He has been published in American Thinker, currently writes for the Richmond Examiner as well as Virginia Right! Blog. Tom lives in Hanover County, Va and is involved in politics at every level and is a Recovering Republican who has finally had enough of the War on Conservatives in progress with the Leadership of the GOP on a National Level.

2 Responses to “The Cost of Democare”

  1. A friend wrote this to me:The NYT had an article that the CBO reran Obama’s budget numbers and he had deceived them to the tune of $1.2T !!!Worse than that they projected that at the current rate of debt and interest accumulation by the year 2018 we would be paying 90% of the GDP to debt and entitlement.Nothing left for defense, research, etc.Sometime before that point the US will be imploding.I read in a WSJ article day before yesterday that when ObamaCare in fully enacted 51% of the US economy will be devoted the medical care programs.So it is so bazaar that they would slam a medical device tax on the industry which will jack up the cost of every aspect of it – from latex gloves to MRIs. I suspect this is for two reasons, 1) put the health insurance companies out of business so they can be nationalized … almost there now and 2) force evolvement into a “single payer” system where the Federal Gov has full control over all aspects of health care.BTW, the only way all this will work, even at this point with current legislature from last weekend, is for a massive system (1,700 new agencies and offices) where HSS and IRS have a merged database of all our information. There is no way for HSS to determine who pays what based on income and wealth with out the IRS data. The IRS is the enforcer and must know all the HSS data on each of us.That behemoth of a database will be “slocked” by contractors dealing with really crappy requirements that the Gov offices threw together or worse yet IRS and HSS offices building their own systems like the IRS did in the late 1980’s and early ‘90s that cost billions all of which was scrapped when it did not work, then they have to gravel and bring in a group of big software and system companies to redo it at the cost of ~$13B. They spent that much themselves. All this will happen again and it is so huge the left hand will not know what the right hand is doing.There will be waste galore, but worse yet all that data about all of us, every aspect of us – money and physical health / history will be hacked before the behemoth ever goes operational. These clowns do not have a clue of what they are doing, what it will cost and how long it will take.I spent all my working years building and designing / specifying big systems for the government.It will implode into a HUGH pile of waste and fraud.Fraud will be rampant, double efforts will be common and the classical biblical story of the tower of Babel will come true in the USA."Now the whole earth had one language and few words. And as men migrated from the east, they found a plain in the land of Shinar and settled there. And they said to one another, 'Come, let us make bricks, and burn them thoroughly.' And they had brick for stone, and bitumen for mortar. Then they said, 'Come, let us build ourselves a city, and a tower with its top in the heavens, and let us make a name for ourselves, lest we be scattered abroad upon the face of the whole earth.' And the LORD came down to see the city and the tower, which the sons of men had built. And the LORD said, 'Behold, they are one people, and they have all one language; and this is only the beginning of what they will do; and nothing that they propose to do will now be impossible for them. Come, let us go down, and there confuse their language, that they may not understand one another's speech.' So the LORD scattered them abroad from there over the face of all the earth, and they left off building the city.' Therefore its name was called Babel, because there the LORD confused the language of all the earth; and from there the LORD scattered them abroad over the face of all the earth." (Genesis 11:1-9)


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Tom White Says:

Nothing is more conservative than a republican wanting to get their majority back. And nothing is more liberal than a republican WITH a majority.

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