• The ACA doesn’t squeeze employers

    The Wall Street Journal has gotten this one wrong. Click over to the LDI site to find out why.

    The link is to my final post as the LDI blogger in residence, or this episode of it anyway. I thank Dan Polsky, LDI Executive Director, for the invitation and support, as well as the many others who helped make it happen and kept things running smoothly (you know who you are). I enjoyed the experience and the conference.


    • Austin:
      Let’s assume that 95% of the employers retain their plans.
      Most employers pay most or all of the employee’s cost and very little of the cost for dependents.
      Under the ACA, employers must offer insurance to employees and their dependents.
      If coverage is affordable, no subsidies are available for the family.
      Coverage can be affordable if the employee-only cost of coverage is no greater than 9.5% of household income. This applies to the employee only. With most of the dependent cost paid by the employee, he may be paying 20% of his household income for coverage for himself and dependents.
      This makes the family ineligible for subsidies, which they would have qualified for if the employer did not offer coverage.
      Don Levit