CA Obamacare penalty to cost employers more than plan

May 7, 2013

By Katy Grimes

new-york-post-obamacare

As more regulations are discovered in the 2010 Affordable Care Act, more people are realizing the impact of the legislation. And California looks as if the law could hit it hard.

CA medical claims will jump 62 percent 

According to the Society of Actuaries, financial risk analysts, nationally, medical claims will jump an average of 32 percent for Americans’ individual health care policies under President Barack Obama’s government health care plan.

For Californians, it will be even worse: 62 percent.

But even with clever private sector work-arounds, California lawmakers, led by a Democratic supermajority, are leaving nothing to chance, nor any flexibility for employers. This is a do-it-or-die deal.

California, the first state in the nation to establish an ObamaCare Health Exchange, is working apparently to set a new low in government-driven healthcare ideology with what some are referring to as “CaliCare.”

AB 880, by Assemblyman Richard Pan, D-Sacramento, is a bill which essentially would force large businesses to offer health insurance by fining them more than the average cost of providing coverage. Money raised by AB 880 is meant to increase Medi-Cal provider rates, and to subsidize state costs for it.

“AB 880’s monetary penalty is written purposely vague but sure to be painful to business,” health care expert and lawyer Craig Gottwals with BB&T-Liberty Benefit Insurance Services told me.

“The proposed penalty on employers is based on 110 percent of the average cost of health care coverage, including both the employer’s and employee’s share of the premium.”

Gottwals found:

“According to the Kaiser Family Foundation, the national average cost for individual health care coverage in 2012 was $5,615 and family coverage was $15,745. It is unclear whether AB 880 sets the penalty level at the individual or family level of health care coverage but even if it were set at the lower individual level it would be 110% of $5,615 or a cool $6,176.50 per employee in 2013. That is over three times the federal penalty for not providing healthcare to an employee under PPACA.”

According to the bill:

“The amount of the employer responsibility penalty shall be adjusted annually to reflect changes 
in the average cost of coverage provided by large employers to their employees.” 

The law would apply to private employers with 500 or more employees in California and for employees working as few as 8 hours per week.

AB 880 also exempts governments:

“‘large employer’ shall not include a state, 
city, county, city and county, district or any other governmental employer. … An employer responsibility penalty shall not be incurred by a state, county, city, city and county, district, or any other governmental entity.”

So the government, as it often does, exempted itself from the onerous burdens it’s placing on the private sector.

The many exemptions and exempted groups have been ignored by most of the media. The law reads:

 “HHS regulations also provide that the hardship exemption will be available on a case-by-case basis for individuals who face other unexpected personal or financial circumstances that prevent them from obtaining coverage.”

“The shared responsibility payment (IRS penalty) should not apply to any taxpayer for whom coverage is unaffordable, who has other good cause for going without coverage, or who goes without coverage for only a short time.”

IRS exemptions

The IRS’s allowable exemptions include nine categories of individuals who are exempt from the shared responsibility payment:

* Individuals who cannot afford coverage;

* Taxpayers with income below the federal filing threshold;

* Members of Indian tribes;

* Hardship;

* Individuals who experience short coverage gaps;

* Religious conscience;

* Members of a health-care sharing ministry;

* Incarcerated individuals; and

* Individuals who are not lawfully present.

These exemptions leave mainly the working middle class paying income tax to pick up the tab for most of the system.

We also are finding that

* Most of the middle class will not be able to afford the insurance, and their children will not be covered.

* The half of Americans who do not pay federal income taxes will not be required to pay the “mandatory” IRS fine if they do not buy government health insurance.

* Illegal immigrants will not be fined for not having insurance.

And just in case anyone else was missed the exemption list, the last paragraph was added to cover any other vulnerable group:

“The HHS regulations also provide that the hardship exemption will be available on a case-by-case basis for individuals who face other unexpected personal or financial circumstances that prevent them from obtaining coverage.”

“Healthcare costs have increased 170 percent over the past decade,” said Gottwals. “AB 880 will make for one steroid-induced penalty for state rulers to plunder in upcoming years. Perhaps we can take the Bullet Train to new state-funded clinics?”

39 comments

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  1. Bunker Queen
    Bunker Queen 7 May, 2013, 06:58

    “Perhaps we can take the Bullet Train to new state-funded clinics?”

    See if you can get a seat in the “Tedszly Steele Observation Car”….it provides a lovely view of the brown that is the central valley.

    Reply this comment
  2. Ted Steele, Janitor
    Ted Steele, Janitor 7 May, 2013, 07:11

    I hate the stupid train little buddy! While I would of course be honored to have a car, I think the train will serve merely as a transpo conduit for the families of state penn inmates on their central valley conjugal visits.

    Now– let’s try and stick to this thread about Obamacare. We do not need Obamacare. Why should we pay to take care of those less fortunate than ourselves???

    In A State of Ted.

    Reply this comment
  3. Bunker Queen
    Bunker Queen 7 May, 2013, 07:31

    We do not need Obamacare.

    A moment of clarity! Well done.

    (pat on tedz little noggin)

    Reply this comment
  4. Hondo
    Hondo 7 May, 2013, 08:58

    I hear illegal alien snowboard instructors get an exemption under the plan. Do the illegal alien porn workers that have flooded amerika from eastern Europe since the fall of the communism, get an exemption too. So many of their lives were destroyed by porn. Talk about a war on women.
    Hondo….

    Reply this comment
  5. Steve Mehlman
    Steve Mehlman 7 May, 2013, 09:43

    “CA Obamacare penalty to cost employers more than plan.”

    Well, duh! The idea of having a penalty is to encourage employers to offerthe plan to their employees. That’s why the penalty is more expensive.

    If it were cheaper to pay the fine than offer the plan, how many employers would do the right thing? Not many, unfortunately. That’s a sad commentary on how little today’s employers care about the workers who make their success possible.

    Reply this comment
  6. Tax Target
    Tax Target 7 May, 2013, 10:53

    What is that klaxon going off at the offices of private companies?? Ooops must the general quarters alarm to get the hell out of Kalifornsky! If the tax burden isn’t forcing companies to leave then this proposed Obamacare idiocy surely will… bye bye Kalifornsky business bye bye!

    Reply this comment
  7. Ted Steele, Navigator
    Ted Steele, Navigator 7 May, 2013, 11:00

    Thankx alot Bunker Queen— it’s just bad law. I mean gosh, taking care of the less fortunate? NO WAY– it’s just a bad idea. Are there no poorhouses???

    Reply this comment
  8. Bunker Queen
    Bunker Queen 7 May, 2013, 11:31

    I mean gosh, taking care of the less fortunate? NO WAY– it’s just a bad idea. Are there no poorhouses???

    There’s going to plenty more poorhouses and residents to inhabit them. DOOOOOOOOOOOOOOOOOOOO
    OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOM!

    Tedz I figured you were a proud member of Team Dem but given what you do for a living a didn’t think you could be blindingly stupid enough to think a “top down” restructuring of the health care system under the wise hand of Nancy Pelosi, fronted by an empty suit from the Chicago outfit could turn out okay!

    Hmmm…analytical skilz…i guess you don’t really haz em.

    Reply this comment
  9. Ted Steele, Navigator
    Ted Steele, Navigator 7 May, 2013, 11:41

    I agree little Queeny— screw the less fortunate! It’s clearly what Jesus would do.

    Reply this comment
  10. us citizen
    us citizen 7 May, 2013, 12:45

    Why should everyone else be responsible for your life if you screw up and make bad choices?

    Reply this comment
  11. SkippingDog
    SkippingDog 7 May, 2013, 13:12

    The purpose of the non-compliance penalty is to make it more painful for people to not purchase health insurance and enter the risk pool than to participate in the program. That’s how all economic incentives and disincentives operate, so it makes perfect sense to apply that to our state businesses, as well as individuals.

    The cost of not complying with any law, even the ACA, should always be substantially higher than the costs of compliance.

    Reply this comment
  12. S Moderation Douglas
    S Moderation Douglas 7 May, 2013, 13:12

    “Why should everyone else be responsible for your life if you screw up and make bad choices?”

    Precisely. That’s why the Heritage Foundation proposed the individual mandate as early as 1988.

    Reply this comment
  13. Bunker Queen
    Bunker Queen 7 May, 2013, 13:32

    I agree little Queeny— screw the less fortunate!

    Then you’re in agreement with the likely results of PelosiCare. Good of you to admit screwing the poor by offering them “services” that they would likely shun if given other options. Hell Tedz why don’t you…and by extension… the rest of TEAM DEM just offer them veterinary care….. at least the wait times would be shorter.

    Reply this comment
  14. Ted Steele, Navigator
    Ted Steele, Navigator 7 May, 2013, 14:21

    I think we agree then Queeny!
    Good
    It’s
    Settled!

    We should repeal Obamacare because it’s wrong to care for the poor. Good idea you have there little buddy!

    just that easy ™!

    Reply this comment
  15. Bunker Queen
    Bunker Queen 7 May, 2013, 15:54

    I think we agree then Queeny!
    Good
    It’s
    Settled!

    We should repeal Obamacare because it’s wrong to care for the poor. Good idea you have there little buddy!

    just that easy ™!

    Tedsly, one day we’ll need to sit down together…… me with a nice beer and you with whatever pharms the caseworker provides to keep you level and discuss both your difficulty with reading comprehension and what it’s like being such an Uber Tard.

    Reply this comment
  16. Ted Steele, Navigator
    Ted Steele, Navigator 7 May, 2013, 16:32

    “Tard” ?

    Childlike.

    Reply this comment
  17. Bunker Queen
    Bunker Queen 7 May, 2013, 16:35

    Childlike.

    So says a ….cough cough…man who posts as The Africanized Swarm of Ted Steele System. Irony thy name is TEDZ!

    LOLOLOLOLOLOLOLOLOLOLOLOOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOL!

    Reply this comment
  18. dltravers
    dltravers 7 May, 2013, 17:31

    In Massachusetts, where they have an obama care type plan, the cost for a family of four making $62,000 a year is $850 a month for the imposed you have to take it healthcare plan. If you make less you can get a subsidy of I don’t know how much.

    Over 16% of your income goes to mandatory health insurance. It has become so bad that government now ignores the mandate for you to buy the insurance. It kills the small business self-employed types.

    What is the purpose of all this? Is there a better way? I certainly miss my union and company run health benefits.

    Reply this comment
  19. us citizen
    us citizen 7 May, 2013, 18:11

    I noticed Teddy didnt answer my question………typical dem response

    Reply this comment
  20. Steve Mehlman
    Steve Mehlman 7 May, 2013, 19:43

    Wow, I am impressed with Bunker Queen’s typing skills. If you push the caps lock and press the same letter a number of times, that excuses you from having to engage in a rational debate or to know what you are talking about. Great job!

    Reply this comment
  21. Ted Steele, Janitor
    Ted Steele, Janitor 7 May, 2013, 20:34

    Queeny— the funny thing is that in using “tard” you don’t see the dif between my zaney self effacing monikers and your sad, hurtful, make-fun-of-those with disabilities type labels like “tard” you use. I remember some guys following your lead in…well…about 7th grade…..LOL—- You are a sad case little buddy….

    Reply this comment
  22. fish
    fish 8 May, 2013, 01:42

    Yawn…..what time is it?

    If you push the caps lock and press the same letter a number of times, that excuses you from having to engage in a rational debate or to know what you are talking about. Great job!

    Rational debate……? You do know where you are don’t you Ted….err I mean Stevie?

    Reply this comment
  23. Ted Steele, Navigator
    Ted Steele, Navigator 8 May, 2013, 08:26

    Fishlips– It always cracks me up that you trolls think I am every other poster who disagrees with you. LMAO– it actually saves me alot of wasted posting time!

    Reply this comment
  24. Bunker Queen
    Bunker Queen 8 May, 2013, 09:11

    Fishlips….?

    I thought you christened me Bunker Queen Tedz? And let’s be honest…..it’s sock and fingerpuppets all the way down around here. I’m pretty sure I saw you high-fiving yourself furiously when you thought I was…who was it….”Rex the Wonder Poodle”.

    Reply this comment
  25. Ted Steele, Navigator
    Ted Steele, Navigator 8 May, 2013, 13:46

    LOL

    Oh poor Fishlips– I post under one name– Ted Steele, my real name little buddy. Look me up, I’m good in the book. Now just for fun, I do give myself a bewildering array of job descriptions of credentials,(my fans LOVE it!) but T. Steele is always in the handle. Well, ever since my Momma and Pappy gave me the glorious title so many years ago.

    You, on the other hand, seem to post under a few— the two I know about are Fishlips and ol Queeny…and I suspect you were Rex the Poodle as well …

    Thar ya go!

    I’ll be your server! Enjoy!

    Reply this comment
  26. S Moderation Douglas
    S Moderation Douglas 8 May, 2013, 14:29

    T. Steele, if that is your real name;

    Not Rex! I think he was a one-off.

    Reply this comment
  27. Bunker Queen
    Bunker Queen 8 May, 2013, 14:43

    I know about are Fishlips and ol Queeny…and I suspect you were Rex the Poodle as well …

    Well the first two name you yourself awarded me. I can assure you however that I am not now nor have I ever been Mr. Poodle.

    Reply this comment
  28. Ted Steele, Navigator
    Ted Steele, Navigator 8 May, 2013, 16:04

    suuuuuuuuuuuuuuuuuuuuuuuuuuuuure.

    Reply this comment
  29. Bunker Queen
    Bunker Queen 8 May, 2013, 17:09

    suuuuuuuuuuuuuuuuuuuuuuuuuuuuure.

    Ah…still having trouble with the arthritis….truly sad!

    Reply this comment
  30. Queeg
    Queeg 8 May, 2013, 20:58

    Stop picking on Teddy……who will take care of the poor? 33% of Orange County residents have no health care……shocked?

    Reply this comment
  31. Skippingdog
    Skippingdog 8 May, 2013, 23:11

    Unless they have computers at the big pound, I don’t think our poodle friend can access the internet these days. It will be interesting to see the changes in his behavior when he’s paid his debt to society.

    Reply this comment
  32. Ted Steele, Prosecutor
    Ted Steele, Prosecutor 9 May, 2013, 06:41

    Skipper– You are very observant.

    Reply this comment
  33. Bunker Queen
    Bunker Queen 9 May, 2013, 11:51

    Skipper– You are very observant.

    So by acknowledging the “Skipper” is very observant you are admitting that I’m not M. Poodle?

    Just want to get that down in the official record. I think it’s important that we only have one “Sockpuppeteer”….cough……land use attorney….cough, cough here at CWD.

    Reply this comment
  34. Ted Steele, Navigator
    Ted Steele, Navigator 9 May, 2013, 13:48

    land use attny? Is that your job?

    Reply this comment
  35. Bunker Queen
    Bunker Queen 9 May, 2013, 15:14

    Ah there he goes again…….

    Reply this comment
  36. Steve Mehlman
    Steve Mehlman 10 May, 2013, 10:04

    “Rational debate……? You do know where you are don’t you Ted….err I mean Stevie?”

    You have a point, Fishy. Just sit back and read all the nonsensical posts that have nothing to do with the issue at hand. Sounds like a bunch of little kids fighting on the playground. So I guess you are right that if I want rational debate on something, this certainly isn’t the place to do it.

    Reply this comment
  37. stolson
    stolson 10 May, 2013, 11:25

    “The HHS regulations also provide that the hardship exemption will be available on a case-by-case basis for individuals who face other unexpected personal or financial circumstances that prevent them from obtaining coverage.”
    Well, this is vague. What constitutes the unexpected part? Does it give specifics?
    Will Walmart have to comply? Has this been thoroughly thought out?

    Reply this comment
  38. thebeerghost
    thebeerghost 11 May, 2013, 17:55

    us citizen says:
    May 7, 2013 at 12:45 pm
    Why should everyone else be responsible for your life if you screw up and make bad choices?

    That’s kind of the point of the plan. We shouldn’t be responsible for paying the health care costs of those not responsible enough to buy insurance.

    Reply this comment

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