AP sources: Senate likely to cut employer mandate

[Thrill]

WASHINGTON – Businesses would not be required to provide health insurance under legislation being readied for Senate debate, but large firms would owe significant penalties if any worker needed government subsidies to buy coverage on their own, according to Democratic officials familiar with talks on the bill.

For firms with more than 50 employees, the fee could be as high as $750 multiplied by the total size of the work force if only a few workers needed federal aid, these officials said. That is a more stringent penalty than in a bill that recently cleared the Senate Finance Committee, which said companies should face penalties on a per-employee basis.

These officials also said individuals would generally be required to purchase affordable insurance if it were available, and face penalties if they defied the requirement.

The officials spoke on condition of anonymity, saying they were not authorized to discuss the private negotiations involving key Senate Democrats and the White House. They also stressed that no final decisions have been made on the details of the measure, expected to reach the Senate floor in about two weeks.

http://news.yahoo.com/s/ap/20091025/ap_on_go_co/us_health_care_overhaul

[Eric J in MN]

1. Contradictory phrasing by the AP.

Businesses with over 50 employees aren't required to buy insurance but they will be penalized if they don't.

[vaberella]

10. I read that and it made no sense to me. In the end they'd have to provide it.

It just doesn't make sense.

[peacebird]

2. my employer pays more than $750 a month for their part of my insurance already

this would be a huge bargain for employers, even if it were $750 a month.

Never let it be said that congress isn't looking out for the best interest of the corporations.

[Kurt_and_Hunter]

3. That would cost Walmart $1.35 Billion

(Walmart had about 1.8 million employees in 2005.)

Insuring their employees would cost even more, of course. I'd guess 7-10 billion.

$750/employee is a bargain.

[WinkyDink]

6. What's that, a year's salary for Sam?

[Aramchek]

4. "They also stressed that no final decisions have been made on the details of the measure"

So basically they said nothing, and even had to do that anonymously.

[Jane Austin]

5. Would this give more people access to the Government Plan - the

Public Option?

I know our small staff would rather have good coverage from a government option than the crappy coverage we provide from Blue Cross/ Blue Shield.

[WinkyDink]

8. I wonder, if they suddenly had to pay more. "Public" isn't "free."

[Jane Austin]

12. There's no reason we couldn't raise their pay enough to pay for

the public option plan.

I think we'd save money as well as getting them better coverage.

You have no idea how expensive the insurance is we provide our employees.

[WinkyDink]

7. Sounds like a lot of dropped coverage for many employees, who will need to then pay.

Is this helpful to American workers?

[pampango]

9. If it's hard for American companies to compete with foreign ones that don't pay for health care

for their employees, won't we have to get employers out of the health care funding business. That's what has happened in Canada and Europe. Employers, among others, will have to pay higher taxes to fund health, but the taxes come out of profits rather than a cost factor of production as it is now. This will make it easier for American companies to compete with those in other countries.

A total shift away from employer responsibility for health care financing can't happen in this round of HCR for many reasons, but it would seem to be good long term goal.

[vaberella]

11. This is really one of the most absurd articles out there. I'd take politico any day.

How are they not mandated when they'd get penalized for not providing it?! Not to mention I don't understand all these unnamed sources. People are familiar, want to talk on basis of anonimity when there hasn't even a bill written to know what's really going on. We have nothing yet but a load of rumors running around like mad.