While listening to various talk radio shows can be entertaining, it can also be pretty insightful even when stating what should have been completely obvious to even a third grader.
According to the Congressional Budget Office (CBO) which has recently done a survey of employers offering health benefits for employees, 30% or more of employers will opt to pay the $2000 per year penalty for not providing insurance once the federal option kicks in. The CBO originally estimated that only 3-5% of companies would do this.
I say this is a smart move, if somewhat disingenuous; by the companies as it improves the bottom line for shareholders. So now that this is coming out of the CBO, what I’m left wondering is why every major company isn’t jumping on this option; of course maybe they are and just didn’t want to show their hands yet. The cost savings are simply mind-blowing when you figure that for a meager $2000 penalty, you are no longer responsible for providing your employees with any type of health benefits; and the federal government will now provide those benefits for them instead.