Quote:
Originally Posted by Minte
If everyone we employ opted in we would have no option but to reduce dramatically the amount we contribute. Along with that we would probably have to lose dental,death and 401k. Even with all that our accountants say we would have a tough time affording it.
As far as giving everyone the money, first off. It would be fully taxable for the employee. THen the big issue. How do you justify to single people that have worked for us over 5 years giving more to new starts if they have a family? We have looked at self insured over the years a few times and there never has been any real solution for how to be fair to all the employees.
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Many employers only cover the employee and if that employee chooses to have a family then the rest of the premium is on them. There is no reason you cannot do the same.
Yes, it would be taxable to the employee but if they buy insurance with it they get the deduction. I haven't looked into it, but couldn't you put the money into a flex spending account tax free to the employee?
With requirements that 80% of premiums go towards care the insurance companies have less opportunity to gouge on premiums. If they simply allow more care to boost their profits there will be a more efficient company that comes along who won't and eat market share. If they all get together to prevent that then it is price fixing and they will have a lot more problems on their hands.
With profits capped insurance companies will have to actually start competing with each other because if they want to make more money they need to woo more members.
Rather than just relying on accountants why not hire a company like Marsh that will provide comprehensive HR solutions for a law that isn't going to change? Their clients do not seem to be as anxious about it as you.