Monday, September 30, 2013

CONSTRUCTIVE PROPOSALS IN THE PPACA HEALTH LAW

Here we are in another manufactured crisis.  Unfortunately, it has developed into a situation where neither side can budge, it appears.  The Republicans could have done some good if instead of trying to destroy Obamacare (Patient Protection and Affordable Care Act or PPACA or just ACA), they tired to fix parts of it.

I would have suggested they propose elimination of the Employer Mandate that liberal economists like Paul Krugman thinks shouldn't have been in the bill in the first place.  Among other things, it only applies to companies with more than 50 full-time employees and even then only those that work more than 30 hrs a week.  Most restaurants need a lot of employees during rush hours, say two hours at lunch and two hours at supper which is 28 hrs a week.  I suspect the Republicans could have gotten this elimination.  A lot of companies will provide health care even if the Employer Mandate is repealed because it is in their interests to do so.  It provides for a more stable workforce, and they can eliminate the expenses by laying off employees.  Also they will probably have to pay employees more if they discontinue health coverage as there is less reason to stay in a low paying job.

I think Republicans could have gotten elimination of the Employer Mandate because Obama has already pushed implementation off for a year (http://www.foxnews.com/politics/2013/09/05/white-house-releases-proposed-new-rules-for-obamacare-employer-mandate-after/).  this delay is estimated to cost the government $12 billion (http://online.wsj.com/article/SB10001424127887324809004578638282900414410.html).  The administration wants to ease the reporting requirements and the IRS has recently released reporting rules (http://thehill.com/blogs/regwatch/healthcare/320565-irs-issues-reporting-regs-for-obamacares-employer-mandate). Something employers are not taking into account will be that the employer mandate will be a level playing field which is something companies have always said they want.  If one chain will have to raise prices, other chains will have to also.  Only mom and pop places will not have to pay it.  There are big restaurant chains that provide health plans now, Cracker Barrel is one (and they also provide for paid vacations).  I believe Olive Garden doesn't and they have trouble filling positions that leave a whole dining room vacant while maybe 30 customers wait to be seated.  I, for one, will not go there because of this though I like their menu.

They feel more concerned about the Medical Device Tax (2.3% on hip replacement pieces, heart stents, etc., but not eyeglasses or hearing aids).  the Congressional Budget Office estimates that this tax will raise only $29 billion over a decade (http://www.washingtonpost.com/blogs/wonkblog/wp/2013/09/28/how-obamacares-medical-device-tax-became-a-top-repeal-target/).  The tax will apply to medical device imports but not exports which should discourage some importation of devices but encourage exports.  Some 260 co-sponsors in congress have signed on to a bill eliminating the tax, and the industry has spent $150 million lobbying against the tax.  But with all the screwing around, Harry Reid now has said that eliminating the tax will not be considered in the Senate.

So I think the Republicans have missed doing some good on the PPACA, but , who knows, maybe in the end one or both of these proposals might be implemented.

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