Hey Guys, got a question

[zoombabyzoom]

Ok so my employer is changing the amount of contribution he makes to our health plan. Was 90%, now it will be 50%.

So he is losing his grandfathered status on purpose. What consequences are there for that? This is a small business, less than 25 employees. And from my standpoint, I really cant afford the change. So what happens to me and other employees? Do I have to pay extra or go find a new plan outside of my employer (both options will cause me to pay a lot more than I do now)?

Thanks.

 

[Thumb]

You should find out if you guys will get wage increases. Many employers figure the cost of insurance and stuff to be a part of a workers salary, if he cuts it by 40% ask if it's going to be in the form of net income, or is he just cutting your overall salary.

 

[zoombabyzoom]

No he is just cutting how much of a contribution he puts into our health insurance.

 

[KAWDUP]

Many companies are doing that. The costs have been sky-rocketing for some time. I hate to say this, but I have noticed since I just finished a job search of my own not too long ago, that medium-sized start-ups that are hiring are still offering 90% of benefits. If you don't mind moving, there are compainies all over the south that are hiring this way.

Short of that, I also found that the reasonable personal plans that are out there are 10-20% higher in cost than the 50% plan that your company is probably going to. I guarantee the company knows this. They already have figured out what is an acceptable loss in employees over this, and the fact that they are still competitive with those personal plans.

Not sure this wouldn't have happened anyway, even if we didn't have nationalized health care. I am sure if you ask others in this forum, they will tell you nationalized health care had nothing to do with it, and this was heading our way anyway.

It's only the Unions that are exempt - they get to keep their "Cadillac" plans or so I've heard. :*)

 

[byco42]

It is my understanding that your employer is not obligated to even offer health coverage because the company has less than 50 full-time employees.

 

[KAWDUP]

It is my understanding that your employer is not obligated to even offer health coverage because the company has less than 50 full-time employees.

I thought they had to pay a fine if they did that? I expect the fine is much less than offering a plan, but they still get fined, no?

 

[redandguilty]

It is my understanding that your employer is not obligated to even offer health coverage because the company has less than 50 full-time employees.

I don't know, but this sounds right to me.

Apparently, that changes in 2014
http://online.wsj.com/article/SB10001424052702303561504577494582381825186.html

 

[Michchamp]

Ok so my employer is changing the amount of contribution he makes to our health plan. Was 90%, now it will be 50%.

So he is losing his grandfathered status on purpose. What consequences are there for that? This is a small business, less than 25 employees. And from my standpoint, I really cant afford the change. So what happens to me and other employees? Do I have to pay extra or go find a new plan outside of my employer (both options will cause me to pay a lot more than I do now)?

Thanks.

you work for tsmith?

 

[redandguilty]

you work for tsmith?