zoocrewphoto wrote:What about those of us who have great insurance, but will either lose it or get it greatly reduced, while our cost for it goes up? I have what is considered a caddilac plan. If it stays the way it is, it will be taxed at 40%. So, it will have to be cut or dropped, which means that I will have to go the exchanges and pay for insurance that currently costs me pretty much nothing. My HRA account gets more than I pay in premiums. I will not be getting a pay increase to make up for it. The only way for my employer to avoid this penalty is to drop everybody to less than 30 hours.
I realize I am repeating myself here, but I still believe that zoocrewphoto's fears are unfounded. The excise tax on "Cadillac plans" won't kick in until 2018, so no employer should be using it as an excuse to reduce benefits in 2013. The tax is payable by insurers, not employers (unless they self-insure) or employees. It is assessed only on the excess over $10,200 for individual coverage or $27,500 for family coverage. For example, the annual tax on an $11,000 individual policy would be $320 (40% of $800), not $4,400 (40% of $11,000). These thresholds are much higher than average premiums, they will be indexed for inflation, and there is an exception for certain dangerous jobs in which health insurance is unusually expensive. I don't actually think our present system of employer-sponsored health insurance is very efficient, and there would be advantages to a system in which people chose their own coverage instead of being limited, as a practical matter, to what their employers offer. Nevertheless, the PPACA had to accommodate existing interests, and so it was clearly designed to minimize the effect on people who currently have adequate insurance coverage through their employers. I have such coverage, and I do not expect the advent of the exchanges in 2014 to change things much for our company.