Everyone’s talking about how difficult it is to find job applicants.
Recent employer inquiries hint at a solution;” What would it cost to offer group health insurance for the first time?”
Health insurance is expensive, thanks to the “skyrocketing” cost of health care. But think of it in a different light.
Try calculating your premiums per employee per hour.
The U.S. Bureau Labor of Statistics (HERE) says that number is just $3.00/hour. (Seems low.) Compare that to the proposed increase in
the minimum wage; $7.25 to $15.00. Note the former is a tax deductible expense; add to the latter, payroll taxes.
So, isn’t offering a group health plan a no-brainer?
Depends.
As previously noted in Tip # 496, the American Rescue Plan Act expanded Marketplace tax subsidies so that no one would have to pay more than 8.5% of income for health insurance.
(Although temporary now, in his April 28th address to Congress, the President proposed making these permanent.)
Thus, unless an employer pays more than 91.5% of the premium, does the ARPA disincentivize employer sponsored plans?
Obamacare penalizes larger businesses for not offering health insurance.
At minimum, O’Bidencare (Obamacare 2.0?) seems to be sending small employers mixed messages.
