Tags: Rule | hurts | health | insurance

Furchtgott-Roth: Obamacare Hurts Companies That Try to Help Workers

By    |   Monday, 27 July 2015 07:00 AM

A new healthcare rule takes effect this month, and it's not a good one, says Diana Furchtgott-Roth, a senior fellow at the Manhattan Institute.

The rule allows the IRS to fine companies reimbursing their workers' health-insurance premiums $100 a worker per day, up to $500,000 per company a year.

The rule essentially tells employers, "don’t even think about reimbursing your workers’ health-insurance premiums," Furchtgott-Roth writes on MarketWatch.com.

The IRS penalty isn't included in the Obamacare law, she notes. In fact, it's more than 12 times the $3,000 per worker per year cap the law requires companies to pay when an employee gets subsidized coverage from an insurance exchange.

The new penalty also dwarfs the $2,000 per worker per year sanction for failing to offer adequate health insurance.

"The $100 fine is applicable not only to large firms, but also those with fewer than 50 workers that are exempt from the $2,000 and $3,000 employer penalties," Furchtgott-Roth says. "The new rule is broad, sweeping and overly punitive."

Health insurance, of course, is a major issue for the middle class. And when it comes to that beleaguered demographic, presidential frontrunners Jeb Bush and Hillary Clinton are both trying to build their campaigns on a fight to boost it.

But they're going about it the wrong way, says John Tamny, political economy editor at Forbes. "While they’re not terribly similar in terms of policies, each has chosen to pander to an apparently easy to gull middle class," he writes on Forbes.com.

So what should the two candidates do?

"Were both Clinton and Bush more economically attuned, and perhaps a bit more honest, they would correctly say that the best and only way to achieve their goals would be to substantially reduce the tax burden foisted on the rich and big corporations alike," Tamny maintains.

"Nothing could be simpler, yet each candidate seems rather eager to not be seen as too cozy with the successful. That’s odd, and not just when we consider the net worth of Clinton and Bush, along with those donating to Clinton and Bush."

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A new healthcare rule takes effect this month, and it's not a good one, says Diana Furchtgott-Roth, a senior fellow at the Manhattan Institute.
Rule, hurts, health, insurance
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2015-00-27
Monday, 27 July 2015 07:00 AM
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