Obama Care vs Republicans

[Lamplighter]

Originally Posted by Adak

And Lamplighter, do you ACTUALLY believe that most employers
will be continuing to pay into a medical insurance plan, that isn't required, for their employees?
<snip>
Because I can assure you, if they're not forced to, most businesses will not be
just throwing money into some expense that they don't have to.

Yes, I do.

Employers with an annual employee levels of less than 30 FTE (full time equivalents)
remain exempt from Obamacare, and larger businesses (50 FTE) are required to provide health insurance.

Even if some employers change their benefits, it will be a relatively small
part of the economy, and will eventually sort itself out over the years.

But to your point...

The economics of employee benefits does not change just because of Obamacare.
Employers can spend $ on wages or on employee benefits, such as health care... their choice.
But tax benefits to the employer of the costs of health insurance are 35%

So, employers can balance spending 100% more in a salary raise,
against only 65% more in an increase in benefits to the employee... their choice.

That is not even considering the more "emotional" side of maintaining
employer/employee relationships, including such impacts on the business
as employee turn-over, employee illness/absense, positive employee motivations towards the business, etc.