How will Obama Care handle this...
Posted: Mon Jul 16, 2012 7:00 pm
Obama Care is set up so that more people will be insured, therefore lowering the overall average cost per covered individual. Younger, healthier people will now be paying for coverage that they are much less likely to need. Further, costs of subsidizing the costs of the poor who can't afford the coverage will be somewhat offset by penalties charged to "Cadillac" plans.
But what happens to the costs of Obama Care when huge employers with Cadillac plans drop out of the insurance marketplace completely. Further what if it is a huge employer with a workforce that is very healthy and claims per employee put it in the top 5% of companies?
There are multiple companies that are currently considering this option, including my wives company. There are 17,500 employees of her company located here in SA at the corporate headquarters. They are actively looking to see about bringing health care in house. They would hire roughly 100 doctors from GP to specialists who would be company employees. These doctors would have their offices in a new health complex built on the company campus. This complex would work in partnership with the 4 teaching hospitals that are within 5 miles of the campus.
This would be appealing to Doctors who would take home more money at the end of the day because their costs are zero. The company would pay all the expenses from nurses to insurance. This works for the company because they aren't paying the huge costs for insurance premiums. It will also work for employees who will still have choices of doctors, will see their costs go to zero, and their insurance paperwork disappear.
This doesn't work for Obama Care, because it removes 45,500 healthy insureds from the overall pool. It also removes payments from the "Cadillac" plan penalties.
Now granted this won't work for all companies, but it will for large single city type companies. Look for large union shops and other large white collar employers to move to set something like this up.
But what happens to the costs of Obama Care when huge employers with Cadillac plans drop out of the insurance marketplace completely. Further what if it is a huge employer with a workforce that is very healthy and claims per employee put it in the top 5% of companies?
There are multiple companies that are currently considering this option, including my wives company. There are 17,500 employees of her company located here in SA at the corporate headquarters. They are actively looking to see about bringing health care in house. They would hire roughly 100 doctors from GP to specialists who would be company employees. These doctors would have their offices in a new health complex built on the company campus. This complex would work in partnership with the 4 teaching hospitals that are within 5 miles of the campus.
This would be appealing to Doctors who would take home more money at the end of the day because their costs are zero. The company would pay all the expenses from nurses to insurance. This works for the company because they aren't paying the huge costs for insurance premiums. It will also work for employees who will still have choices of doctors, will see their costs go to zero, and their insurance paperwork disappear.
This doesn't work for Obama Care, because it removes 45,500 healthy insureds from the overall pool. It also removes payments from the "Cadillac" plan penalties.
Now granted this won't work for all companies, but it will for large single city type companies. Look for large union shops and other large white collar employers to move to set something like this up.
