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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsThree Ways Obamacare Could Change Retail Forever
From ChiefExecutive.net:
Employer Mandate Tax (Jan 2014): If an employer does not offer health coverage, and at least one employee qualifies for a health tax credit, the employer must pay an additional non-deductible tax of $2000 for all full-time employees. Applies to all employers with 50 or more employees. If any employee actually receives coverage through the exchange, the penalty on the employer for that employee rises to $3000. If the employer requires a waiting period to enroll in coverage of 30-60 days, there is a $400 tax per employee ($600 if the period is 60 days or longer). Bill: PPACA; Page: 345-346
So, retailers will have make a decision. They can either eliminate employee health plans after 2012 if the penalty is actually lower than what they'd have to pay for a health insurance plan, or pay for it themselves.
Either way, there will be costs. But even if retailers thought the Supreme Court would strike it down, many of the big retailers have been planning for the worst since the health care overhaul first came up.
Read more: http://www.businessinsider.com/three-questions-about-obamacare-that-will-change-retail-forever-2012-6
Retailers either have to stay under 50 employees, or they have to go big to get the benefits of scale to afford the new tax or provide health care.
This should take a big chunk out of bricks and mortar retailers as online becomes even more competitive.
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Comrade_McKenzie
(2,526 posts)
Sherman A1
(38,958 posts)
FarCenter
(19,429 posts)The cut back some in 2011, especially for part time employees.
http://www.nytimes.com/2011/10/21/business/wal-mart-cuts-some-health-care-benefits.html?pagewanted=all
kestrel91316
(51,666 posts)FarCenter
(19,429 posts)That way each company can stay undere 50 employees.
Lot of work for lawyers and accountants in the next three years.
kestrel91316
(51,666 posts)riderinthestorm
(23,272 posts)and working the numbers to see what they will do.
Honestly, this may be the road to single payer. Once we de-couple health insurance from employment, its only a matter of time imho.
FarCenter
(19,429 posts)It will work like Medicare Part C (Medicare Advantage plans) where insurance companies offer several semi-standardized plans that the purchaser can choose from. There is no public option.
http://en.wikipedia.org/wiki/Health_insurance_exchange
riderinthestorm
(23,272 posts)I think breaking the US mentality that health insurance is tied to your employer will be a big deal. Once people understand their insurance is transportable, that will be transformative.
Beyond that, WHEN the insurance companies get greedy and jack up the prices again, and again, and again (since there isn't any caps in place under the ACA) and people aren't shielded from those price hikes by their employer - to whatever extent an employer could shield their employees - i do believe the public option will pass as a viable option.
Many other more intelligent DU minds than I have pointed out that the exchanges are deeply flawed without a public option. I'm pretty sure the Obama team knows this as well. I'm going to think that states like Vermont that are going to offer the public option will lead the way for all states to expand Medicare for all/adopt a public option (like Canada got their health care structure in place).
spin
(17,493 posts)For the cost of $79 dollars a year I get free two day shipping. I've ordered books, electronics, kitchen cookware, food, shoes, clothing, etc, etc, etc. Since I live in a rural area of Florida and the nearest big brick and mortar retailer (unfortunately a Walmart) is a 40 mile round trip, I have saved far more than the cost of the prime membership in gasoline alone.
Plus I get a far better selection of merchandise than is available locally and often it is far cheaper. I also don't have to deal with crowds of people and wait in a long line to check out.
quaker bill
(8,225 posts)Raising the minimum wage, when Clinton did it, was supposed to do all this sort of stuff too. It didn't. It is $1.00 an hour.
