Wednesday, March 24, 2010

The End to Healthcare Insurance

Expect huge health insurance coverage drops by employers by 2014. As I have pointed out the purpose of the Law is to bankrupt the health insurance companies and the States.

Why would an employer pay for health insurance?

Starting in 2014, the health insurance companies will not be able to refuse for "pre-existing" conditions. Why in the world would a company offer health insurance coverage? Instead of kicking out $10-25k a year in health benefits, just give the employee a $1-2k bonus for taking care of the penalty or increase your salary by a few percent. Instant savings. This would be good for companies that do not have many employees right now or self-employed.

In theory, everyone will have health insurance coverage even if they are not paying for it. You just sign up when get sick.

As far as medium and large companies, if you are not moving out of the US now you better get busy. Your bills are going to be going up drastically with no out clause. The ones remaining will have huge cost increases and as more and more leave the cost will increase that much more.

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