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 Employers Oppose Health Care Mandates and Curbing Tax-Free Benefits
Location: BlogsCII InfoBlog    
Posted by: larryc 7/15/2009 6:37 AM
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According to an article published by Workforce.com, a recent survey showed that more than 60% of U.S. employers oppose capping the tax-favored status of employer-paid health care premiums as part of health care reform legislation. More than 50% of employers also oppose the proposed healthcare mandates which would call for imposing an annual per employee charge of $750 for employers with more than 25 employees that do not provide coverage to full-time employees and a $375 for each part-time employee that does not receive coverage.

Despite employer opinions, both of these scenarios are likely to be included in any proposed health care reform legislation, as federal lawmakers are looking for ways to produce some revenue needed to provide health insurance premium subsidies for a portion of the country’s 46 million uninsured.

No one can dispute the need to reform health care in this country, and with premiums increasing every year, it’s easy to understand why the Federal government is looking for ways to provide incentives for companies to continue to provide their employees with health care coverage (even if it’s a form of negative reinforcement). However, with the current state of the economy, it seems a little surprising that Congress is proposing a potential solution that amounts to a pay cut for U.S. workers. Making formerly non-taxable benefits taxable is way to increase the tax burden of many Americans without admitting that you’re raising taxes.

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