ACA / ObamaCare and employers that dump employees … NOT always a bad thing
Bill Golden, CEO of IntelligenceCareers.com and USAJobZoo.com has some thoughts:
There is a lot of misinformation and misunderstanding about who is covered by the Affordable Care Act (ACA), better known as ObamaCare.
The ACA rule for whether you need to buy coverage is simple: if you have ANY FORM of insurance then you are already covered. There is no need to do anything new or different. ANY FORM means Medicaid, Medicare, TRICARE, private insurance, whatever.
About Employers Dumping Employees
There are two categories of employers dumping their own coverage plans:
— Too Bad, So Sad Dumpers: dumping their insurance plans and telling their employees to depend upon Obamacare. No extra money provided. While some employers have been getting in the news for doing this, it would seem per the evidence (this info is collected each month as part of the payroll process reported to state agencies) that this is not a significant trend. Significant meaning more than a 1-2% increase over prior years when employers just dumped employees and they were left with absolutely no options other than public assistance.
In many cases these dumped employees can get ACA coverage cheaper than what they paid out of their paycheck for employer-provided coverage … and they have more choices and options now. This could end up putting more money in their pockets plus have the freedom to leave their employers once they find a better job, without the need to worry about their healthcare coverage.
— The Good Guy Dumpers: An unintended consequence of Obamacare is that it may well indeed be cheaper than what many employers can negotiate on their own. So there are employers that are telling their employees that they will need to use ObamaCare … BUT these employers are covering the costs of the plan and sometimes even kicking in a little extra to help with the copays. This is actually a very good thing. Sometimes you can improve the bottom line while also doing good for your workers at the same time. A more financially secure employer means greater chances for longterm collection of paychecks.
While neither of these employers may have intent to do so, these employers are essentially making the argument that healthcare coverage should indeed be universal, portable and not tied to any condition of employment. They are making the case for programs like the ACA as being needed for the modern workforce to thrive and to survive … whether they meant to send this message or not.
William ‘Bill’ Golden