Thursday, September 18, 2014

About The So Called Cadillac Tax On Obamacare

Tom Shortell | The Express-Times: Northampton County employees should expect their health care contributions increase in the next few weeks, says county executive John Brown-- "the county's health care administrator has said it would face a $9.3 million "Cadillac plan" tax in 2018 under the Affordable Care Act based off 2013 expenses."

According to this MC article published in October 2013... "Pat Siemiontkowski, Northampton County director of human resources... said if the county does nothing, its Cadillac tax hit could be $1 million in 2018 and a budget-busting $28 million by 2028." That's a far cry from the $9.3 million the current Northampton county executive is now claiming.

The article goes on to say, "Northampton County, based on a recommendation from its insurance administrator Capital Blue Cross, is predicting an annual increase of 11 percent. At that rate, its 2014 "family plan" cost of $22,080 would balloon to more than $33,000 by 2018."

So let's crunch the numbers for "the family plan" mentioned.The so-called Cadillac tax is on 40% of anything costing over $27,500 for a family plan. First we subtract $27,500 from the estimated assumed costs by 2018 of $33,000. This leaves us with the amount of $5,500 per employee. Now take 40% of that is $2,200 per employee. Multiply that by the 1,600 and we come up with an amount of $3.52 million.
As you can see the director of human services was way off back last October. It's more likely Brown's figure of $9.3 might be more accurate since not all the plans are family plans.

But with that said folks should keep in mind a few facts United Healthcare posted back in 2010-- "the actual thresholds will be based on medical inflation between 2010 and 2018... The thresholds may also be adjusted for individuals in high-risk professions and may be increased by an age and gender adjustment."

In short this is still almost four years away. Should this even be a consideration for Northampton County employees? Not in my opinion until it actually comes time for new labor contract discussions.

John Brown appears to be playing the Obamacare card as a means to deflect away from other woes facing future Northampton County budgets. There's too much focus on his proposal to increase employees costs almost four years ahead of time based on what future 'Obamacare' costs may or may not be. This I take issue with.

I can't tell you how many comments I read blasting greedy government workers and/or Obamacare. Never ever once have I read a single one against those who greatly profit from the healthcare it costs taxpayers for those workers. The lawyers, insurers, hospitals, doctors and drug firms always get a pass for some reason whenever this issue comes up.
      Why is the average smuck so unaware they are being bamboozled?

Republicans insist Obamacare is bankrupting people while ignoring the real problems with healthcare consists of things they refuse to talk about. Tort Reform and out of control costs going towards healthcare professionals, medical equipment and pharmaceutical firms.

Think I'm FOS?
Check this out in today's paper Trial lawyer Kline gives $50M to Drexel law school.. "..the firm has reached the upper ranks of law firms handling catastrophic personal-injury cases. On its website, it lists awards and settlements on behalf of clients of more than $1.7 billion, noting at the same time that the results of many other resolved cases could not be reported under terms of confidentiality agreements."

Then check this out. In 2013 Big Pharma Pockets $711 Billion in Profits by Robbing Seniors, Taxpayers.

If Republican politicians are so worried about destroying Obamacare perhaps they should come up with something better.

It's still not too late
I'm sure Americans would gladly support the repeal of 'Obamacare' if only there were some legislations passed that would give us better alternatives. Instead of conservative politicians continually pointing the finger at Obama how about coming up with something better. Until such a time (possibly never) I consider stuff like this political gamesmanship. It solves nothing at either the local or national level.

At least this President tried to do something about the insane costs for medical care. If I said this once, I've said it a dozens times, if someone has a better idea, let's hear it. Instead all I'm hearing is this constant bellyaching and whining while lawyers, hospital medical professionals and drug firms continue to get rich.

God sakes folks wake up, look around. How many hugely expen$ive homes and places of businesses related to the medical profession does one have to look at before they figure out who's making all the loot and at who's expense? Anyone see an average county worker who could afford to live in the same neighborhood?

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