Video: Ohio company cancels insurance coverage for 1,000 employees

posted at 3:21 pm on November 21, 2013 by Ed Morrissey

Just think what will happen when the employer mandate really kicks into gear next year.  One Ohio company has decided to get ahead of the game by acting now — allowing them to save costs on both the premiums and the fines for at least the next year. WEWS reports on PSC Metals and the move of an additional 1,000 people into the ObamaCare exchanges (via TWS):

If PSC drops its health insurance, the company would face a penalty of $2000 per employee under the Affordable Care Act.

But for some companies, that penalty may actually be a big savings, says Tom Sutton, a NewsChannel 5 political analyst and chair of political science at Baldwin Wallace University.

That’s because companies pay up to $7,000 for individual coverage and up to $20,000 for family coverage. Compared to the $2,000 penalty?

“You’re going to save a lot of money,” Sutton says.

And that’s not all. Sutton adds, “The Obama Administration has postponed the employer mandate penalty until 2015.”

That means, if a company cuts its health insurance now, they have a whole year without both the insurance payments to make or the penalties to pay.

There’s another angle to this, too.  Don’t forget that the employer mandate requires companies with more than 50 employees to provide subsidized coverage for their workers — but not for spouses at all, and doesn’t require employers to provide subsidies to cover dependent children.  The employees have to pick up the full cost of that coverage if offered by their employers, but can get taxpayer-provided federal subsidies if the employer refuses to comply with the mandate.  Employees with children may well be financially better off going into the exchanges (although perhaps not in provider coverage), while employers save money by dumping group coverage altogether.

The CBO estimates that 6 million people will lose their employer-based coverage by 2016, but I’m betting it’s going to be a lot higher than that for the above reasons:

Millions of people are expected to lose their employer-based healthcare coverage over the next decade, according to business surveys and estimates by the Congressional Budget Office (CBO).

By 2016, the CBO has projected that 6 million fewer people will receive employer-based health insurance compared with this year. The estimate includes those who could obtain coverage through their work but choose not to.

Experts say the healthcare law is not the cause of the general shift by employers from providing healthcare, but acknowledge supporters of the law will have to defend it.

It’s going to be far worse than that, and there will be no doubt as to the reason for the change.  The ObamaCare law incentivizes those decisions, and the only disincentive is competition in the labor market.  As soon as the first few employers begin dumping coverage, that disincentive will disappear rapidly.


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Ohio did vote to elect Obama twice.

You get what you vote for.

Resist We Much on November 21, 2013 at 3:24 PM

It’s beginning to look a lot like Christmas!

Pqlyur1 on November 21, 2013 at 3:24 PM

Just the beginning.

Lots of people will die due to obama’care’, and soon.

Schadenfreude on November 21, 2013 at 3:25 PM

Storm the Gates!

Hang the Engineers and Foremen.

A FREE Samsung for everyone.

A roll of toilet paper for every other.

When the man in front of you flushes, pick up the roll and Shiite!

WryTrvllr on November 21, 2013 at 3:26 PM

Not satisfied with setting race relations back 50 years, Obama is setting medical care back 100 years.

VorDaj on November 21, 2013 at 3:26 PM

You voted for him.
Eat it,Ohio.

RovesChins on November 21, 2013 at 3:27 PM

Hmmm as a business owner it makes one think……

jdsbengaltiger on November 21, 2013 at 3:27 PM

The ObamaCare law incentivizes those decisions

Yeah, Ed. Always call it obama’care’. Good on you!!!

Don’t enable the goebbellian thugs, ever.

Schadenfreude on November 21, 2013 at 3:27 PM

obamaGrinch is early.

Schadenfreude on November 21, 2013 at 3:28 PM

Dude this is just the start. Wiat until next year when the employer mandate kicks in. You will see many stories like this daily. Places have been kicking people off for a few years now, but its going to speed up rather fast come October 2014

watertown on November 21, 2013 at 3:29 PM

1000 more for the Tea Party.

ElectricPhase on November 21, 2013 at 3:29 PM

Don’t get comfortable, Ohiotonians, this is just the first of a tsunami to hit your state.

But good job throwing in with Dog Eater, that was a vote well spent, yes?

Bishop on November 21, 2013 at 3:30 PM

“If you want to make an omelet you have to crack a few eggs”. Vladimir Lenin

simkeith on November 21, 2013 at 3:31 PM

Thanks again, 52 percenters!

Cicero43 on November 21, 2013 at 3:31 PM

Experts say the healthcare law is not the cause of the general shift by employers from providing healthcare, but acknowledge supporters of the law will have to defend it.

Sure.

That’s about as believable as Kasich saying that supporting Medicaid expansions has nothing whatsoever to do with ObamaCare.

Bitter Clinger on November 21, 2013 at 3:32 PM

Ohio: you get the government you elect… Well done, well done!!

Khun Joe on November 21, 2013 at 3:33 PM

Ohio did vote to elect Obama twice.

Yes, they did………..and now their getting that Hope and Change real good and hard.

JoeinTX on November 21, 2013 at 3:33 PM

Obama will lawlessly delay the employer mandate for another year — until 2016 — if it looks bad for Senate Dems in ’14.

He cares more about his judicial appointments than his O’Care bs.

matthew8787 on November 21, 2013 at 3:34 PM

Keep voting democrat!

Murphy9 on November 21, 2013 at 3:35 PM

Possible that Neanderthal went extinct due to socialized medicine?

Welcome to the Stone Age.

New TV show starting this fall:

“Militia Nurse”

“Kidnapped by the local militia in Post-Obamacare America, forced to take care of….tea party Constitutionalists and their hunting dogs, forced to patch up their wounds for nothing but canned food and beans…..Molly Reynolds is…..Militia Nurse!”

I don’t care what anybody says, you put Diane Lane in that roll, and soccer moms everywhere are going to watch it. Throw in that Wolverine dude with the sideburns and I’m telling you that ratings gold.

KirknBurker on November 21, 2013 at 3:39 PM

Just the beginning.

Lots of people will die due to obama’care’, and soon.

Schadenfreude on November 21, 2013 at 3:25 PM

Let the death panels begin!!!!

Democrats first…..

redguy on November 21, 2013 at 3:39 PM

My dad works for Sprouts, a whole foods/orangic foods chain dropped instance for everyone but managMent. They also cut the hours of everyone but management. His deductible doubled and his co pays went up. He’s voted democrat all his life except in 2012. Cast his first R vote for Romney.

jawkneemusic on November 21, 2013 at 3:40 PM

They should just seize the company like Seattle’s new socialist city council member suggested Boeing’s machinists do and give everyone free healthcare or something…

Pqlyur1 on November 21, 2013 at 3:40 PM

So what the Dems will say, and: “That evil steel company should be taken over by the government! Then will have higher wages and congressial quality health care for all employees. And, uh, to the evil labor exploiting owner of that steel company we say: you didn’t build that! The government did. Give up your company!”

anotherJoe on November 21, 2013 at 3:40 PM

Obama will lawlessly delay the employer mandate for another year — until 2016 — if it looks bad for Senate Dems in ’14.

He cares more about his judicial appointments than his O’Care bs.

matthew8787 on November 21, 2013 at 3:34 PM

It won’t matter. Most business make plans years out. See my post above. Most business are going to start preparing now, delay or no delay.

jawkneemusic on November 21, 2013 at 3:41 PM

They should just seize the company like Seattle’s new socialist city council member suggested Boeing’s machinists do and give everyone free healthcare or something…

Pqlyur1 on November 21, 2013 at 3:40 PM

I knew she was a commit dimwit but she actually said THAT?

ROFL

Bishop on November 21, 2013 at 3:42 PM

Not Everybody from Ohio voted for the Chief Liar.

Patricksp on November 21, 2013 at 3:44 PM

Not Everybody from Ohio voted for the Chief Liar.

Patricksp on November 21, 2013 at 3:44 PM

merely voting isn’t enough anymore.

WryTrvllr on November 21, 2013 at 3:46 PM

Not Everybody from Ohio voted for the Chief Liar.

Patricksp on November 21, 2013 at 3:44 PM

But they’re based in Cuyahoga County (Cleveland), which means the workers are mostly likely union and voted for Obama.

sentinelrules on November 21, 2013 at 3:47 PM

Merry Christmas Happy Holidays Obama voters…

Merry Christmas to everyone else…

PatriotRider on November 21, 2013 at 3:48 PM

It will be more than that and competition for workers won’t help. Work is hard to find in the Obama economy especially manufacturing and people will not quit their jobs if they lose their employer plans.

breffnian on November 21, 2013 at 3:50 PM

Hey, Oh, Way To Go Ohio

You may recognize to this tune if you listen to Rush.

MichaelGabriel on November 21, 2013 at 3:51 PM

If “This Week” were to do a name scroll with the names of companies that are opting out of BarryCare, in the same manner that they used to do the Iraqi Death Lists, they would have to extend the show to 90-minutes during 2014.

Another Drew on November 21, 2013 at 3:52 PM

But but how will they compete for workers?!

LtGenRob on November 21, 2013 at 3:58 PM

If I was a business owner with more than 50 employees, I’d reorganize and keep only the management folks as full time, and change the rest to independent sub-contractors, paying them their entire salary with no deductions and sending them a 1099 at the end of the year. That way they’d have to pay ALL of their FISA, SSN, etc, PLUS all of their health insurance to boot.

Once those folks saw how much the government takes from them, and how much their employer has to shell out as well, they’ll be screaming for reform.

TKindred on November 21, 2013 at 3:58 PM

crap!

Akzed on November 21, 2013 at 3:57 PM

Don’t you dare. Toilet paper is at a premium.

WryTrvllr on November 21, 2013 at 3:59 PM

Like the laws of economics and human nature, the laws of physics are also inviolable…

For every action, there is an equal and opposite reaction….

As much as they might wish that their ideology, beliefs around hope and change, or unicorns and gaia, can change these laws, they do not change. Neither does the fact that every time, and every place, these policies have been attempted, the result is tyranny and fiscal ruin. (ref Einstein’s insanity definition here)

The quality and ability to implement is immaterial when the foundation of the policy is fundamentally bankrupt. An excellent implementation cannot fix a fundamentally bankrupt policy.

Athos on November 21, 2013 at 4:00 PM

Racists. Seize them! And their little company tooo!!!

/PelosiBama

Key West Reader on November 21, 2013 at 4:00 PM

This is AWESOME…TOTAL AWESOME!! I am ROTFLMMFBO! What percentage of PSC Metals voted for the Obumbler? I’m going to say, “51%”. They can thank those idiots for this!! This is F’n Awesome!! ;-)

Tbone McGraw on November 21, 2013 at 4:02 PM

Hay.

Whut if this starts happ’nin all over the Country n stuff?

/

Key West Reader on November 21, 2013 at 4:03 PM

Once those folks saw how much the government takes from them, and how much their employer has to shell out as well, they’ll be screaming for reform.

TKindred on November 21, 2013 at 3:58 PM

Did you know the average American watches 24 hours of TV per week?
Reality cannot compete with that.

WryTrvllr on November 21, 2013 at 4:04 PM

Hay! What happens if you get booted from your health care plan onto the “ObamaChange” website but it ain’t working? And Hay! What if your wife is 6 months pregnant and loses her physician because you just got booted into the “ObamaChange” website but it ain’t working? Hay! What if you have a child with asthma and his pulmonologist aint all jiggy with ObamaChange?

/Questions

Key West Reader on November 21, 2013 at 4:06 PM

That’s about as believable as Kasich saying that supporting Medicaid expansions has nothing whatsoever to do with ObamaCare.

Bitter Clinger on November 21, 2013 at 3:32 PM

Kasich did a run around the Legislature and used the 7 member Controlling Board. Last I heard the Ohio Supreme Court is to rule on this since 39 House members filed suit against Kasich. They said the Controlling Board has no authority to Legislate. So we’ll see.

Since following the Legislature, I’ve found that they are a microcosm of the Feds. Instead of Federal Dictator do-gooders, they operate at the State level. Many of the R’s are just as dictatorial as Dems.

bluefox on November 21, 2013 at 4:07 PM

Serious question. Companies offer insurance plans as part of an employee’s compensation (though most LI V’S don’t know that). As such the employer gets to write off more than just salary and taxes.
I’m betting most employees aren’t going to see the difference.

LtGenRob on November 21, 2013 at 4:07 PM

Liberalism, destroying the finances and lives of tens of millions of Americans – INTENTIONALLY.

These people must not be allowed to live a life of leisure after having caused so much reckless destruction. Simply removing them from office is not sufficient – it just isn’t. Financial ruin, personal humiliation, even jail time must at minimum be part of the equation.

They, personally, their party, and their sycophants accomplices in the media must be ruined for immediate justice, but also beyond the ability to ever recover and hold power again.

Midas on November 21, 2013 at 4:10 PM

Serious question. Companies offer insurance plans as part of an employee’s compensation (though most LI V’S don’t know that). As such the employer gets to write off more than just salary and taxes.
I’m betting most employees aren’t going to see the difference.

LtGenRob on November 21, 2013 at 4:07 PM

No, they won’t, unless they’re savvy enough to realize that, and bold enough to point that out at some point – maybe even not then, in this employment environment.

Midas on November 21, 2013 at 4:11 PM

What must it be like, reveling with abject glee at the despair of America, knowing your well designed Trojan horse is doing precisely what you’d hoped? Clearing away the capitalist pigs from the diseased nation, and replacing prosperity with some fantasy, unworkable cartoon you’ve pretended works, just to have the most precise control over imperfect human behaviors?

Can you just imagine this Progressive long con, and the knowing smiles of those who think they will be in charge, and those who have devised this misanthropic scheme craving its necessary outcome: the mass death of innocents.

What kind of American is excited for the suffering and impoverishment of his fellow Americans? It is pure, Machiavellian evil.

And yet, in the winter of 2009, when we were screaming at C-SPAN and flying our flag upside-down to warn our neighbors of this looming terror, we got indignation and pleas for maternity care for unwed teens. From veterans, young ones, newly returned who we know must have had no idea what their service was for in the first place. We tried to warn them.

Local control of our schools might be our last chance, but it may be too late, as the assault is many-pronged.

I despise the useful idiots who ruined my children’s America.

winoceros on November 21, 2013 at 4:12 PM

You may recognize to this tune if you listen to Rush.

MichaelGabriel on November 21, 2013 at 3:51 PM

Awesome. Thanks, I had never heard the entire tune before!

bluefox on November 21, 2013 at 4:13 PM

They, personally, their party, and their sycophants accomplices in the media must be ruined for immediate justice, but also beyond the ability to ever recover and hold power again.
Midas on November 21, 2013 at 4:10 PM

This.

winoceros on November 21, 2013 at 4:13 PM

Serious question. Companies offer insurance plans as part of an employee’s compensation (though most LI V’S don’t know that). As such the employer gets to write off more than just salary and taxes.
I’m betting most employees aren’t going to see the difference.

LtGenRob on November 21, 2013 at 4:07 PM

serious answer

http://www.huffingtonpost.com/2013/11/20/walmart-acceptance-rate-harvard_n_4303527.html

(I rarely use serious and huffpo in the same room)

WryTrvllr on November 21, 2013 at 4:14 PM

They had bad insurance from a money grubbing insurance company, provided to them by a nasty corporate entity that only looks out for their own bottom line.

But hey, thank goodness there is now an alternative. Now they can get really good insurance. If not for Obamacare these people would be truly lost in a vast wasteland of death and despair.

Carnac on November 21, 2013 at 4:16 PM

I’m glad that company is cancelling those crappy sub-standard plans…hahahahahahahaha…

PatriotRider on November 21, 2013 at 4:19 PM

You’ve been had you *&%#$@!(*& Obama voters…bend over and enjoy it…

PatriotRider on November 21, 2013 at 4:20 PM

But they’re based in Cuyahoga County (Cleveland), which means the workers are mostly likely union and voted for Obama.

sentinelrules on November 21, 2013 at 3:47 PM

True. That County is a Dem stronghold for sure. Many other Counties are as well.

Strange thing happened during the Primary in Ohio in 2012. Santorum was leading as I followed the S.O.S. feed and these Dem strongholds hadn’t tallied their votes yet. When those results started coming in, Romney was winning! Remember, Obama was on the ballot!

bluefox on November 21, 2013 at 4:26 PM

In the letter that went out to employees, there should have been a paper with the names and phone numbers of all Democrat representatives in Ohio.

You know. So the employees know who to call to “thank”.

kurtzz3 on November 21, 2013 at 4:38 PM

To paraphrase Oscar Wilde, “One would have to have a heart of stone to read this without dissolving into tears…of laughter”.

Elections matter.

Mason on November 21, 2013 at 4:40 PM

All this will do is force congress to raise the penalties…

right2bright on November 21, 2013 at 4:45 PM

crap!

Akzed on November 21, 2013 at 3:57 PM

What do you bet the next HotAir headline involving her will be her expressing shock and outrage when Boeing opts to build their next generation of jumbo jets elsewhere?

alchemist19 on November 21, 2013 at 4:49 PM

The Dems had the easy job. All they had to do was destroy the health care system.

The Republicans will have nearly impossible job. How do you put all of this back together again?

PackerBronco on November 21, 2013 at 4:55 PM

You idiots voted for Obama. You got Obama. Now STFU! and bend over!

BTW, if King Barack decides to grant a general amnesty for illegals, you folks in Ohio can KISS OFF YOUR JOBS!

GarandFan on November 21, 2013 at 4:55 PM

Just the beginning.

Lots of people will die due to obama’care’, and soon.

Schadenfreude on November 21, 2013 at 3:25 PM

They’ll stay on the voting rolls and now they’ll vote THE WAY THEY’RE SUPPOSED TO.

PackerBronco on November 21, 2013 at 4:58 PM

Obama will lawlessly delay the employer mandate for another year — until 2016 — if it looks bad for Senate Dems in ’14.

He cares more about his judicial appointments than his O’Care bs.

matthew8787 on November 21, 2013 at 3:34 PM

That will be a gift for republicans on 2 fronts.

First as mentioned in the story, If Dog Eater pushes the mandate back for another year that means the $2000/person penalty doesn’t kick in for another year which actually encourages companies to start dumping their employees onto the exchanges now and save $2000/person for 2 years since the exchanges are open now (technically speaking).

Secondly, I can’t see how the dems will go along with the employer mandate fully kicking in before just a presidential election.

So go for it Jug Ears.

veni vidi vici on November 21, 2013 at 5:01 PM

Really, it would be best if Congress abolished all requirements for employers to pay for employee health insurance, so that everyone is in the individual market.
Well, assuming that all the minimum requirements on the individual market are also abolished.

Count to 10 on November 21, 2013 at 5:02 PM

I wonder if she coordinated this statement with the REB getting his new seats on the NLRB?

slickwillie2001 on November 21, 2013 at 5:03 PM

But they’re based in Cuyahoga County (Cleveland), which means the workers are mostly likely union and voted for Obama.

sentinelrules on November 21, 2013 at 3:47 PM

Yes, in fact Cuyahoga is one of the Democratics’ vote-theft ‘spigots’. Because they have total control there they can wait until the voting trend in an election is clear so they know how many votes to steal to win. This is why Democratics can steal the Senate and the Presidency, but not the House.

slickwillie2001 on November 21, 2013 at 5:19 PM

Battleground state loses battle–what is not to love.

hillsoftx on November 21, 2013 at 5:48 PM

California has decided to disobey Obama’s order to allow the fix for individuals. I’m sure that’s because they need the healthy middle-class people (payers) to offset all the old and poor who are signing up.

I guess Obama was wink, winking when he talked about the fix.

PattyJ on November 21, 2013 at 5:50 PM

He’s voted democrat all his life except in 2012. Cast his first R vote for Romney.

jawkneemusic on November 21, 2013 at 3:40 PM

.
Too bad he was four years too late in recognizing the extant danger to our republic and two years too late to save the health care insurance system. Good luck.

ExpressoBold on November 21, 2013 at 5:54 PM

From Akzeds’ link:

That’s not to say that the machinists can’t build their own planes, of course. They could open up their own business, design their own planes, and build planes themselves, but they’ll need to find an awful lot of capital with which to do it.

They sure can. And if there’s more than 50 of them, they’ll have to provide healthcare coverage for everyone.

But then again, they’d have to get around this.

Karma.

BobMbx on November 21, 2013 at 6:02 PM

Ohio did vote to elect Obama twice.

You get what you vote for.

Resist We Much on November 21, 2013 at 3:24 PM

et al.

As did FL twice, VA twice, CO twice, IA twice, NH twice, NC almost twice, etc.

Ohio is a bellweather state, if someone is winning that much of the rest of the country they will win Ohio. The problem of Obama’s victories go much deeper than a single state.

jarodea on November 21, 2013 at 7:49 PM

They’ll stay on the voting rolls and now they’ll vote THE WAY THEY’RE SUPPOSED TO.

PackerBronco on November 21, 2013 at 4:58 PM

Well, yeah. Everybody knows dead people always vote Democrat. It’s their largest voting bloc.
And hey, there are a whole lot of us in Ohio who voted Romney, just not enough to overcome all those dead folks in Cleveland.

yesiamapirate on November 21, 2013 at 8:05 PM