15 July 2009

How to reduce Health costs for large corporations

Let's say you are the Finance officer for a large corporation with a large number of employees. Health benefits are a large part of your financial picture. Congress is proposing the perfect solution for you and it goes like this: if you do not provide health benefits for your employees they will be able to buy government provided health insurance. All you have to do, as the CFO, is to budget 8% of your payroll as a tax to be paid to President Obama at tax time.

What CFO wouldn't leap at this opportunity! Shed yourself of all the costs both actual (for the insurance you buy) and the administration costs of the same for a fee that is far less than what you pay now. Of course all those employees are now without health insurance for a while but they can buy the much lower cost government insurance which will tell them where to go and who to see and what procedures they can have or not have, alkl supported by our increased taxes.

I find it difficult to believe that any staffer in the House of Representatives actually allowed his Congressman to vote for this inanity. While it is generally accepted that the bill will not make it through the Senate, I am not sanguine.

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