THE UR'S GIFT TO CORPORATE AMERICA:

Job-based health plans' future still uncertain (Ricardo Alonso-Zaldivar, October 25, 2010, Washington Post)

The new health-care law wasn't supposed to undercut employer plans that have provided most people in the United States with coverage for generations.

But last week, a manufacturer told its workers that their costs will jump partly because of the law. Also, a governor laid out a plan for employers to get out of health care by shifting workers into taxpayer-subsidized insurance markets that open in 2014.

While it's too early to proclaim the demise of job-based coverage, corporate number crunchers are looking at options that could lead to major changes.

"The economics of dropping existing coverage is about to become attractive to many employers, both public and private," said Gov. Phil Bredesen (D-Tenn.).

As if it weren't bad enough that the law as written just transfers money from the healthy young to the insurance industry, it also gives employers an excuse to get rid of a benefit. The eventual conservative bill will be far more consumer-oriented and restrictive of business.

Posted by Orrin Judd at October 26, 2010 6:35 AM