[Originally posted March 22 and updated March 24] -- I would love to go into the politics of the
health care legislation that the House passed by such a narrow margin and that President Obama subsequently signed into law, but I’ll refrain. Instead, I want to focus on what this new legislation might mean for those in the surveying, mapping and related professions.
First the good news. From 2011 to 2013, a temporary sliding scale tax credit will help small businesses (those with fewer than 25 employees) pay for up to 35 percent of employer costs for employers who cover 50 percent or more of the cost of a health plan for their employees, as long as employee wages average $40,000 or less. Beginning in 2014, the credit will remain available to businesses that purchase insurance through the state health benefit exchanges that are mandated by the legislation.
The bad news is that the full credit will only be available to businesses with 10 or fewer workers whose average wages are less than $20,000, and the credit will only be available to a firm for two years.
More bad news: Firms with more than 50 employees will have to pay a “free rider” tax penalty on any employees who receive a subsidy in the health benefit exchange. Of course, if this penalty costs less than the mandated health care coverage, which is likely based on current estimates, then more employers may decide to opt out of providing health care coverage and simply pay the tax. In either case, higher fees mean more pressure on numerous businesses that are already struggling to make payroll.
For sole proprietors and individuals buying their own coverage, the legislation appears positive at first glance. Within six months of enactment, which is planned for Jan. 1, 2014, all health insurance plans offered on the individual and small group market will be required to cover “essential health benefits” such as emergency services, hospitalization, physician services, outpatient services, maternity and newborn care, pediatric services (including dental and vision), medical/surgical care, prescription drugs, and mental health and substance abuse services. For many individuals, this is likely far more than what their current plan covers. There’s just one catch—it isn’t free. Individuals will be forced into higher-cost health plans that meet the new mandates. Sliding scale subsidies might help make the higher-cost plans more affordable for those who qualify, but many won’t qualify due to the income limits. Of course, these individuals can always opt out and pay the tax penalty.
What’s more, we can expect the cost for prescription drugs, medical devices (even such minor items as toothbrushes), and health insurance to rise immediately under the new legislation. Beginning Jan. 1, 2010, annual fees of $2.2 billion and $2 billion, respectively, will be imposed on manufacturers of prescription drugs and medical devices, and annual fees of $6.7 billion will be levied on health insurance companies. Who do you think will really pay these added fees?
No one is denying that our health care system has serious problems. My family and many others are struggling to afford rising insurance premiums and ever-increasing medical costs. But I’m having a difficult time understanding how the new legislation resolves these problems.
So much for keeping the politics out of it. My bias is clear. But I want to hear what you think. What will the new health care legislation mean for you and your business? Do you believe passage of the health care reform bill is a positive move for those in the surveying and mapping professions? Please share your comments below.
By: Deral in Oklahoma
Posted: March 22, 2010 9:50 AM
I'm unsure at this moment what all this new bill will do to survey and engineering companies in Oklahoma. Many, like the rest of the country, are struggling to meet the high cost of health insurance now for their employees.
I think many of the larger companies will opt to just drop their plans and pay the penalty leaving employees to face much higher premiums with the government plan.
Senator Pelosi was quoted as saying "We need to pass this bill so we can find out what is in the bill". This scares me the most. I don't think they really just know what all the implications will be with this new plan.
It's pretty simple economics for the large pharmacy companies. They will just increase the cost of medicine to make up the difference in their balance sheets. That increase will be funded by us directly or through increased taxes so we will still be paying more or at least the majority of business owners will.
I do think it was about time they addressed the health industry and I hope this bill is a start to that but at this point I'm more confused on it's ramifications than ever.
Maybe they will have to do a lot of modifications which likely will negate any true savings. So we will be paying more and nothing will have changed for most of us except less take home pay.
I'm trying to be positive about the bill but everyone of our Oklahoma reps voted NO on the bill based on e-mails, calls, letters and other communication from their constituents.
Apparently, this was not considered by others in congress. Most have forgotten who they are supposed to be working for but this is tough for them. They get all their money from these same groups that we are asking them to help control and rein in.
Deral
By: Kirk
Posted: March 22, 2010 11:01 AM
By: Justin
Posted: March 22, 2010 12:20 PM
I live in Massachusetts, where for a few years now we have had a universal health care plan that is essentially the same plan that was just passed by the House. Two months ago I left my old company to start my own survey business, and had to look for insurance on my own.
Our state's plan gives individuals and small businesses the benefit of buying insurance at the same rates previously available to only the largest companies. Through the state-run insurance exchange, I was able to find an unsubsidized private insurance plan that meets all of my needs for $235 a month. If I had continued my old plan through COBRA, it would have cost me $356 a month for a similar plan. I don't even want to know what I would have had to pay if I were buying it on my own in without the help of the state pool.
I can't tell you what all the effects will be nationwide from this new legislation. From my personal experience though, I can tell you there will be a lot fewer uninsured people, and potential entrepreneurs won't have to worry so much about putting themselves and their families at risk.
By: Deral in Oklahoma
Posted: March 22, 2010 12:49 PM
By: Mitch in Seattle
Posted: March 24, 2010 12:15 PM
This bill is the first in a series of steps to help us rein in the insurance companies, pharmaceutical industry, and medical industry. So should we have done nothing while they rob us blind for their massive profit taking in an industry that is un-American enough to have almost no competition?
There is much work to do yet--it's not the be all end all, but it is a step towards taking care of our people.
By: Stacy L. Little, R.P.L.S. - Texas
Posted: March 24, 2010 12:31 PM
By: Harold Baldwin
Posted: March 24, 2010 12:57 PM
By: Paul Jones, Sr.
Posted: March 24, 2010 1:02 PM
"I think we have all just been Pelosie'd!"
By: K.W. Miller
Posted: March 24, 2010 4:59 PM
When Government dictates on what I must spend my money (mandatory health care), my freedoms and liberties have been seriously eroded.
Government has traded liberty for a questionable security.
By: V. M. Mallory
Posted: March 25, 2010 8:11 AM
As always the feds think they knoe best. They passed a bill albiet narrowly, they themselves have no idea what's in it or how it is going to affect the American citizens. Any time the government adds taxes, fees and the like the people pays through the nose at all economic levels.
It appears that Congress is doing a good job of complete takeovers, ie:
GM, Banking,college student loans, etc.,
now it is health care. It will in just a few years bankrupt America. No way is this bill affordable or even viable.
We have a small surveying firm of 5 total people and offer 100% health insurance coverage. Yes it is expensive yet we stuggle to pay premiums so everyone can be covered.
But how I understand this health care bill we will be forced to drop our plan and go with the government national plan. God help us all.
Congress is governing IN SPITE OF THE PEOPLE!!
I believe this is the beginning of a COMPLETE LIBERAL TAKEOVER!
By: Gene
Posted: March 26, 2010 9:55 AM
By: Phil
Posted: March 27, 2010 2:37 PM
I believe tort reform and accountability for the healthcare provider charges would do more toward making healthcare affordable to everyone. Address those issues first, then move on to reforming the health insurance company's practices that deny coverage for pre-existing conditions, etc. I think everyone can agree there is not a perfect, quick-fix solution to a problem that has been growing over the past 50 or 60 years but I think most would agree that government intervention as displayed by this bill is flawed at best and downright dangerous to the liberty and rights of a free society.
By: Manny Gutierrez
Posted: March 30, 2010 7:08 AM
But these letters should instead be addressed to the traitors who voted for it in Congress and in the House, and then vote them OUT!
Another wasteful expense will be the payroll of 150,000+ Government workers needed to put this behemoth in action!
(And then the workers hired to fix what these 150,000 morons will mess up!)
By: Roy Crawford
Posted: March 31, 2010 1:18 PM
By: Roy Crawford
Posted: March 31, 2010 1:19 PM
By: Drew
Posted: March 31, 2010 3:04 PM
By: Dave
Posted: March 31, 2010 5:31 PM
By: Don
Posted: April 1, 2010 4:21 AM
The question begs an answer, "Why was it so important for them to pass this version of health care reform? I think the answer lies in the statement of the President in saying that this health care bill "will now be the law of the land."
We have thought the Constitution has been the law of the land. It is being trampled little by little. We have aPresident whose birth origin is unproven; he has appointed czars (where is that in the Constitution); he accepted the Nobel Peace prize - again unconstitutional; what else? The health care bill puts unconstitutional requirements on us.
The fault is really ours. We have voted our pocket book instead of principle. So se have Congressmen and Senators who are swayed by bribes and/or desire to take from us what is ours. they have been doing it by bits and pieces for many years. This is mearly a giant step in their theiving plot.
By: Rob
Posted: April 1, 2010 12:53 PM
As for the new bill, why should we all be required to support AIG? I understand our current healthcare system is ranked 38th in the world but is the most expensive to the consumer. The biggest cost is the money the insurance companies are making and the paperwork burden and liablity insurance on the medical people. As for the presumed quality of the current system, I spend $100 for a doctor to glance at me for 3 minutes and take a wild guess at whats wrong. If they guess wrong, you'll pay hell trying to get them to look further. I think something needed to be done but I think the feds were too busy being democrat or republican to represent the people.
By: jerry bradford
Posted: April 2, 2010 1:49 PM
By: Manfred Gulla
Posted: April 2, 2010 3:00 PM
Walk down any main street. Chances are nearly one of every 10 people you see has no health insurance. Under our current health care system, more than 14,000 Americans will lose their health insurance daily. Somewhere has to be a start and we have to spread the message around, that the Earth is round!!!
Health reform will completely restructure the employer-based health insurance market. In fact, it's no longer really insurance, but rather a federally defined and administered health benefit. This program will explain in English what Congress has done and how it will affect you and your associates. Some questions to be answered include:
• How will the Patient Protection and Affordable Care Act of 2010 affect employee health benefits?
• What will happen to the cost of health benefits between now and 2014 when most of the premium subsidies and new health insurance underwriting rules take effect?
• What are employers' strategic options in addressing this new world?
Do not miss this important program. The information you gain by attending will have far-reaching effects on how you manage your business in light of this restructure of employer-based health insurance.