So, We Aren't Going To Rehire A Retiring Employee

[The Fake Lonnie Finch]

One of our account execs is retiring. We did the math on the what our cost would be to hire a new employee given the new health care law. And, the conclusion is, it's just going to be more cost effective for everyone else to pitch in and cover than to hire a new employee.

I think things will change once a new Congress or the Supreme Court overturns the law. But, until then, we have decided to do no more hiring until that whole thing is hammered out and all costs are known. As it is, the government craps on you whether you offer health insurance or not.

If the law is not overturned, we'll be fine in trimming this operation down to family only. We just streamline the process and get highly disciplined about following it for every customer and lead.

Risk Management 101: One way to control a risk is to avoid it altogether.

[adman]

One of our account execs is retiring. We did the math on the what our cost would be to hire a new employee given the new health care law. And, the conclusion is, it's just going to be more cost effective for everyone else to pitch in and cover than to hire a new employee.

I think things will change once a new Congress or the Supreme Court overturns the law. But, until then, we have decided to do no more hiring until that whole thing is hammered out and all costs are known. As it is, the government craps on you whether you offer health insurance or not.

If the law is not overturned, we'll be fine in trimming this operation down to family only. We just streamline the process and get highly disciplined about following it for every customer and lead.

Risk Management 101: One way to control a risk is to avoid it altogether.

How could you do the math if all costs aren't known?

[KRAM1]

How could you do the math if all costs aren't known?

Probably because you know enough to know it will cost businesses dearly. Already is with having to cover dependents for several more years. Our coverage went up for that reason alone according to our carrier and our rep. We will not be adding any staff this next year due 100% to the cost of health care coverage under the new laws and what that MIGHT mean once everything is in play. In fact, one of our employees was looking to try to reduce costs by taking dependents off her coverage here at the office. Wanted to sign them up with Blue Cross/Blue Shield for individual coverage. Was told that Blue Cross/Blue Shield was not taking any new individual coverage until they know what the new bill will actually contain and what the costs might be to cover what is required.

That is just a fact...not preaching one side or the other, but from where I sit and for our small group, the changes we have seen already in play have done one thing...Increased the cost of our coverage several...several...percentage points. How do i know? Well, the plan year for us begins October 1...so we have seen our renewal costs already. facts...hard to dispute...costs are going up for LESS coverage...get used to the "change".

[The Fake Lonnie Finch]

We know the cost on parts of it - the carrying kids until 26, the no cancellation/denial of coverage for pre-existing conditions. The rates have already gone up for those companies whose employee benefits we write. That's just the tip of the iceberg; the administrative agencies haven't fleshed out the rest of it yet. The penalty for not carrying/offering coverage is already known.

So, we've decided, to hell with it. We're not keeping up with this stuff. We've got too much other stuff to keep up with as it is. We're all capable of working harder, and so we will.

It's not worth it. Everybody can sack up and buy their own coverage like big boys and girls. We already do.

[KRAM1]

It really is a shame that some people still think the legislation that was passed was a "good deal" for the citizens of the US. All the while they have not read it and really have no clue what's in it or the repercussions it will have for businesses and their employees. Some of the biggest firms in the nation (think AT&T) are currently reassessing their positions with regard to carrying the coverages that they currently do and are seriously considering dropping coverage for retirees.

Also, there are little items in the bill that was signed that have absolutely NOTHING to do with health care that will add thousands and thousands of dollars in costs to doing business going forward. Just whom do you think will pay these costs in the long run? So very few people...including those in DC who voted for or against the bill...have even read the thing.

I currently have friends working for small companies that have been told they will no longer have health care as a benefit when their plans renew. We are a small think tank and will drop all company payments for dependent coverage after this plan year. We used to pay the employee cost and 75% of dependent coast. This year we will pay for the employee and 25% of dependent coverage...next year the employee and ZERO of the dependent coverage. All due to the increased costs we are already seeing under the new health care plan.

Again...that is not a political comment...it is plain fact of life. Change has come in this area, and it is a change we simply cannot afford and remain a viable business entity. It is what it is...and, all costs are not even known as yet. I shudder to think what we (and other firms) may have to do when all the costs kick in. I can tell you that we are having SERIOUS thoughts of dropping coverage altogether and just having our employees go on the market and find their own coverage AT THEIR OWN COSTS. It is getting THAT serious for small groups such as ours.