Are employers dumping health benefits because of Obamacare?
September 26th, 2013
08:00 AM ET
1 year ago

Are employers dumping health benefits because of Obamacare?

New York (CNNMoney) - There are many assumptions about what the effects of Obamacare will be. This series aims to separate myths from realities and answer questions surrounding the Affordable Care Act.

Myth: Employers are dumping health benefits because of Obamacare.

Reality: It's true that Obamacare is raising costs on employers. And some are either passing those increased tabs to workers or are cutting back on benefits to keep costs under control.

FULL STORY

Filed under: Fact Check Obamacare • Health care
soundoff (40 Responses)
  1. Jeff in Virginia

    My employer is doing what their shareholders demand- and that's screw their employees.

    September 26, 2013 10:44 am at 10:44 am |
  2. Rudy NYC

    Fair is Fair wrote:

    That is correct.

    What you fail to obseve, though, is that about 65% of the cost of a typical product goes to the labor that produced it. So if the cost of labor goes up, so goes the cost of the product. Yes, you'll have more money to spend, but you'll be paying more for the same item.
    ---------------------------–
    I think you just made up another "fact". Your number is way too high, but let's go with it. Shall we? Depending upon the product, a 65% labor cost could be either good or bad. For intellectual products, that could be a good number. For manufactured or produced goods, that figure is a complete disaster.

    September 26, 2013 10:49 am at 10:49 am |
  3. Fair is Fair

    "think you just made up another "fact". Your number is way too high, but let's go with it. Shall we? Depending upon the product, a 65% labor cost could be either good or bad. For intellectual products, that could be a good number. For manufactured or produced goods, that figure is a complete disaster."
    ---------
    By the same token, the 65% number is too low for service-oriented products. So what's your point?

    September 26, 2013 10:56 am at 10:56 am |
  4. Data Driven

    @Scott,

    Poor UPS - their CEO won't get a yacht this year. I DON'T CARE. Large corporations have done a superb job of using Obamacare as an excuse for cutting their labor costs even more. It has been reported for years now that corporations are sitting on piles of cash - they've never been richer. Time to distribute some of that cash back down to the people who actually produced it - the workers.

    September 26, 2013 11:00 am at 11:00 am |
  5. Rudy NYC

    "Greed cannot prevail. We are our brothers keeper."

    Greed rules the world. My company recently attended an industry expo at convention center located far from large cities. The city that we were in had a population over 50,000 and the nearest city over 20,000 was 50 miles away. Despite the high fees for floor space charged by the venue, you still had to make arrangements with another company for internet service.

    The charges for one day of internet service were jaw dropping. They wanted $850 per IP address. They charged $2500 for a 4-port router. This was in addtion to a $500 setup fee, which was on top of an additional $500 if you placed an order less than 30 days prior to the event. And this was for just a single 8 hour day of internet service. Greed.

    September 26, 2013 11:01 am at 11:01 am |
  6. Malory Archer

    Several employers - including UPS (UPS, Fortune 500), Delta (DAL, Fortune 500) and University of Virginia - have recently cited Obamacare as a source of increased costs. UPS and University of Virginia will no longer provide benefits for spouses with coverage options elsewhere. Trader Joe's and Home Depot (HD, Fortune 500)are shifting part-time workers to the Obamacare exchanges.

    ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

    The writer of this tripe lost all credibility when he/she put their agenda on display by referring to the ACA as "Obamacare".

    Rates have been increasing year over year since the beginning of time. Here in Florida, rates have increased an average of 11% every year since 1999. ACA will cap those increases.

    Very few employers covered spouse/family bennies prior to the passage of the ACA. They may have offered it, but the employee was required to pony up the premiums themselves.

    Shifting parttime employees to healthcare exchanges doesn't equate to "dropping their coverage" – they'll still get coverage, just at a much lower premium.

    September 26, 2013 11:07 am at 11:07 am |
  7. the hippies were right

    The most important fact in this story that will be ignored is Fox "spews" and all GOPers have been purposely deceiving and misleading the American public regarding the ACA.

    September 26, 2013 11:08 am at 11:08 am |
  8. Thomas

    Republican employers will .

    September 26, 2013 11:09 am at 11:09 am |
  9. Gunderson

    Aw, Humm,
    Shela make good point. Send penny up to government, get ten bucks back. Old Gunderson like those odds. Who care young people pay debt. Fiddle away!

    September 26, 2013 11:12 am at 11:12 am |
  10. Rudy NYC

    Fair is Fair asked:

    By the same token, the 65% number is too low for service-oriented products. So what's your point?
    -----------------------–
    "... So if the cost of labor goes up, so goes the cost of the product. ..."

    That's old school. Before the rise of the uber rich plutocrats. If the cost of labor goes down, up goes the cost of the product. Prices are determined by out just how much the market can stand. You keep raising your price until demand begins to drop.

    Whatever happened to the meritocracy that used to be America?

    September 26, 2013 11:26 am at 11:26 am |
  11. M.A.P.

    I actually learn a lot from reading the discussions between Rudy NYC and Fair is Fair – Thanks to both of you!!

    September 26, 2013 11:26 am at 11:26 am |
  12. Lynda/Minnesota

    Data Driven
    @Scott,

    Poor UPS – their CEO won't get a yacht this year. I DON'T CARE. Large corporations have done a superb job of using Obamacare as an excuse for cutting their labor costs even more. It has been reported for years now that corporations are sitting on piles of cash – they've never been richer. Time to distribute some of that cash back down to the people who actually produced it – the workers.
    ------------

    Agreed, Data. The question now becomes, what can "we" do to convince the corporate powers that be to change direction? Or have we as a Nation reached the point of no return?

    September 26, 2013 11:28 am at 11:28 am |
  13. g

    some of these companies run on the tax payers dime .shipping jobs and replacing them with food stamps -will not fill malls and businesses .made in america would

    September 26, 2013 11:35 am at 11:35 am |
  14. rs

    Lynda/Minnesota

    Data Driven
    @Scott,

    Poor UPS – their CEO won't get a yacht this year. I DON'T CARE. Large corporations have done a superb job of using Obamacare as an excuse for cutting their labor costs even more. It has been reported for years now that corporations are sitting on piles of cash – they've never been richer. Time to distribute some of that cash back down to the people who actually produced it – the workers.
    ----

    Agreed, Data. The question now becomes, what can "we" do to convince the corporate powers that be to change direction? Or have we as a Nation reached the point of no return?
    _______________________
    It's time to re-build the unions.

    September 26, 2013 11:53 am at 11:53 am |
  15. Rudy NYC

    g

    some of these companies run on the tax payers dime .shipping jobs and replacing them with food stamps -will not fill malls and businesses .made in america would
    ---------------------–
    MSNBC had a Republican representative on, [my bad for not writing down his name] , who was being asked about the 4 billion cuts being made to food stamps while his brother and his parents each collected over a million every year in farm subsidies. His response was classic, "The money is not being paid to me." He went on to say that farm subsidies have been cut, but could not say whether or not his relatives' subsidies had been cut.

    September 26, 2013 11:54 am at 11:54 am |
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