Employers Consider Dropping Health Benefits In Exchange For Penalties

May 6, 2010

US (ChattahBox) – In a profit versus employee matter, documents on various companies have been released that show that AT&T, Verizon, and other corporate giants are weighing in on whether or not they will provide benefits to those that work for them, or just pay the penalties to the government.

The documents show columns showing the burden of cost for covering all employees and retirees versus the cost of taking the penalties and paying directly to the government, a foreseen consequence that many hoped the corporations wouldn’t be so heartless as to take.

One document from AT&T and released by CNN showed the cost of coverage at $4.7 billion, while the cost of penalties would be $.6 billion.

However, Representative Henry Waxman (D-Cali) has accused these companies of over-exaggerating the cost of coverage as a financial burden as a ploy, and has demanded that the CEO’s attend a hearing where confidential memos on the topic will be viewed and discussed in front of the House Energy and Commerce Committee, of which he chairs.

The hearing was canceled after 1,100 documents were received, which were surprisingly supportive of the new health care bill despite this possible attempt to navigate away from paying for health benefits.

The question now seems to be whether or not those employees will really be dropped, or the positives that would be provided for the companies issuing benefits will be enough to keep them in line.

If the coverage is dropped on a wide scale, the burden to the government could increase by over $150 billion in the first five years.

Will this fact force higher penalties for companies that drop coverage?

Source


Comments

4 Responses to “Employers Consider Dropping Health Benefits In Exchange For Penalties”

  1. Employers Consider Dropping Health Benefits In Exchange For … on May 6th, 2010 8:32 pm

    […] post: Employers Consider Dropping Health Benefits In Exchange For … Posted in Benefits | Tags: a-profit-versus, and-other, corporate, documents-on-various, […]

  2. Missives From Missouri: Ridgeway: Historic Budget Vote | Educational Missouri on May 8th, 2010 12:29 am

    […] Employers Consider Dropping Health Benefits In Exchange For … […]

  3. St. Louis Rams, Dallas Cowboys Finalize Alex Barron-Bobby … | St. Louis Rams NFL Announcer on May 11th, 2010 11:50 pm

    […] Employers Consider Dropping Health Benefits In Exchange For … […]

  4. Our Healthier Living on May 19th, 2010 2:04 pm

    Very interesting topics.I am looking this type of topics, I need more informations because everyone knows “Health is wealth” is very much known to all and everyone wants good health. That means no one wants to leave this wealth. So, Let us build a food habit discipline, keep pace with work, rest and or exercise to Achieve good health, The ultimate wealth.

Got something to say? **Please Note** - Comments may be edited for clarity or obscenity, and all comments are published at the discretion of ChattahBox.com - Comments are the opinions of the individuals leaving them, and not of ChattahBox.com or its partners. - Please do not spam or submit comments that use copyright materials, hearsay or are based on reports where the supposed fact or quote is not a matter of public knowledge are also not permitted.