Cost of health care mandate: not an easy exercise

Yesterday's WSJ ran a piece that gave some new insights into how the new health insurance mandate will affect employer costs and insurance coverage.  Fast food chains such as Wendy's, Chipotle, Popeye's and Jack in the Box are now lowering their cost estimates because they think many employees will decline the opportunity to have employer-sponsored health insurance.  The premiums charged by these companies will end up being cheaper than the fine on the employee for not being covered, so many will just pay the fine.  Others will rely on Medicaid or coverage from other family members. 

Recall, however, that other chains are doing everything they can to keep worker hours under 30 per week so they are not covered by the new mandate.  So the overall effect on disposable income for employees and cost to employers remains to be seen.  And at the end of the day, how much will health insurance coverage actually expand?

More Obamacare surprises

Two recent pieces about hidden aspects of the Affordable Care Act that are just coming to light, almost three years after the law was passed.  Friday's WSJ reported that employers are just now learning about a $63 per person fee that companies will have to pay for each person they insure.  The proceeds will go to insurance companies to cover the higher medical costs they will face when they can no longer bar coverage to people with pre-existing conditions.  Naturally employers will pass some of this tax on to their workers, either through smaller raises or reduced health benefits.

Unions, once strong proponents of ACA, are now having second thoughts, reports the Weekly Standard.  Some union leaders expected that their plans would be given waivers from ACA requirements, but so far most of them are still waiting for their waiver.  Also, the most generous plans are subject to the "Cadillac tax," and -- surprise, surprise -- employers are not too crazy about paying union workers extra money to cover the tax.