5.06.2013

Obamacare Offers Coverage Sweatshop Labor. They Buy?

How many people are newly eligible to purchase corporate health plan next year you actually do it? It is one of the many questions about health care reform that we do not know the answer. Important for several reasons. First, the company offers health coverage on the hook for most of the 'premium their workers, so the number of people who sign up will affect their costs. It is of particular concern to small businesses that provide health benefits for the first time.Second, premium law considered "affordable" (ie, less than 9.5 percent of the labor income) may still be too expensive to attract workers to buy. Imagine a low-wage restaurant workers or retail stretch to pay for gas housing, food, and other necessities. The workers are not going to be 5 percent of their income to buy health plans to leave the company. And if younger, healthier workers forget about coverage, adverse selection means that someone else will pay more.A new report today from ADP Payroll providers offer some guidance on how this can play. The graph above, based on data from ADP client, showing how workers who drop off the work plan as a premium eating a larger portion of their salaries. Workers began to opt out of the health plan premium costs employers when they began to take more than 3 percent of their income, ADP data showed. This is starting to happen with individuals who make less than $ 40,000 per year and will be more apparent due to a decrease in wages. "If you think about 2014, because it is a great experiment," said Christopher Ryan, vice president of ADP Strategic Advisory Services. "Many millions of people will have the opportunity to purchase the benefits you had before. But the real question is, can they afford it? They really show? "ADP data do not provide a perfect model for what happens in the next year. Individuals who do not purchase coverage fined only in the year 2014. Starting at $ 95, or 1 percent of income (whichever is greater), and a year later increased to $ 695, or 2.5 percent of revenue. Premium tax deductible, while the good is not. However, the graph shows that offer coverage for low-income workers may not be enough to get them insured.

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