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Exiting The Middle Class
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<blockquote data-quote="Ricochet1a" data-source="post: 723289" data-attributes="member: 22880"><p><span style="font-family: 'Calibri'"><span style="font-size: 12px">With the penalties in the health care bill for NOT offering health insurance, FedEx won’t drop insurance coverage. It will continue to increase the premiums for the insurance offered though. </span></span></p><p> </p><p><span style="font-family: 'Calibri'"><span style="font-size: 12px">At this point an increase in the premiums for next year is practically guaranteed – and it is due to two of the provisions in the bill: child coverage till 26 and elimination of lifetime caps on benefits. </span></span></p><p> </p><p><span style="font-family: 'Calibri'"><span style="font-size: 12px">While the extension of insurability for children till age 26 sounds good in practice, for blue collar workers it amounts to a hidden wealth transfer to those that hold white collar jobs in the “upper middle class”. </span></span></p><p> </p><p><span style="font-family: 'Calibri'"><span style="font-size: 12px">Extension of coverage till age 26 basically allows “children” that attend graduate school to maintain full insurability till they get their Masters completed. I have plenty of classmates that haven’t worked a real job in their life that are in my classes and getting their insurance benefits through their parents insurance which already allows coverage till age 26. Between this and student loans, they have a lifestyle which doesn’t require them to work a single hour through to graduation. They do some volunteer work to feel good about themselves – which they make sure to thoroughly document on their resumes. After graduation the “Oh ^#$@” factor kicks in though. FedEx is my quasi volunteer work, given the compensation levels and the lack of someone for me to mooch off of. </span></span></p><p> </p><p><span style="font-family: 'Calibri'"><span style="font-size: 12px">Not many FedEx hourly employees have children that will ever fall into the category that qualifies for this additional coverage -excepting white collar employees that have the income to support their kids through grad school. However, insurance costs are apportioned not on clusters of annual income received, but just across ALL employees. Since more 22 to 26 year olds will be covered by FedEx insurance in the coming months, the cost to FedEx will increase, therefore the capitation cost for each employee’s insurance will increase – regardless if they have children which would ever benefit from this potential additional benefit. This means the FedEx wage earner that has children that will never attend a grad school will be subsidizing the health insurance cost for the predominately white collar employees that would have children that attend graduate school. It isn’t massive, but enough so that insurance premiums for all employees will go up next year by a not insignificant amount. This will show in the premium amounts for “and children” in the insurance options. Those who do not have children theoretically shouldn’t be impacted by this, but don’t count on it, there will be cost shifting going on to keep the increases for those with children from being as large as they would without cost shifting occurring . </span></span></p><p> </p><p><span style="font-family: 'Calibri'"><span style="font-size: 12px">The elimination of coverage limits will also cause an increase in the calculated expense per employee (capitation) for insurance coverage. There is no free lunch. The removal of coverage caps will result in an increase in payouts for health services, resulting in an increase in the cost of the plan and consequently an increase in the premiums levied to each employee. The increase won’t be much per employee theoretically (I’m thinking the additional cost will be in the $5 per month per employee range for this provision). FedEx already had a cap that was rather “high” (many plans have annual caps in the $250,000 range), so it won’t be impacted (theoretically) as much if the current cap was in the 6 figure range. </span></span></p><p> </p><p><span style="font-family: 'Calibri'"><span style="font-size: 12px">The health care legislation does a lot to expand coverage, but it does nothing to control costs. All of the cost controls depend on physicians voluntarily accepting less per patient visit and reductions in charges for every medical procedure/device/pharmaceutical used – not going to happen, which the politicians already know. The next logical step would be complete nationalization of heath care – which is why I’m against what was done. When you have more being paid out, one of two things has to happen. Either FedEx has to absorb the cost (start laughter now) or FedEx will pass those costs on to the employees in terms of higher premiums for the additional benefit. </span></span></p><p> </p><p><span style="font-size: 12px"><span style="font-family: 'Calibri'">Without any sort of collective bargaining agreement in place to protect the employees from being Fred’s piggy bank, the employees will be the ones doing the absorbing of higher costs. </span></span></p></blockquote><p></p>
[QUOTE="Ricochet1a, post: 723289, member: 22880"] [FONT=Calibri][SIZE=3]With the penalties in the health care bill for NOT offering health insurance, FedEx won’t drop insurance coverage. It will continue to increase the premiums for the insurance offered though. [/SIZE][/FONT] [FONT=Calibri][SIZE=3] [/SIZE][/FONT] [FONT=Calibri][SIZE=3]At this point an increase in the premiums for next year is practically guaranteed – and it is due to two of the provisions in the bill: child coverage till 26 and elimination of lifetime caps on benefits. [/SIZE][/FONT] [FONT=Calibri][SIZE=3] [/SIZE][/FONT] [FONT=Calibri][SIZE=3]While the extension of insurability for children till age 26 sounds good in practice, for blue collar workers it amounts to a hidden wealth transfer to those that hold white collar jobs in the “upper middle class”. [/SIZE][/FONT] [FONT=Calibri][SIZE=3] [/SIZE][/FONT] [FONT=Calibri][SIZE=3]Extension of coverage till age 26 basically allows “children” that attend graduate school to maintain full insurability till they get their Masters completed. I have plenty of classmates that haven’t worked a real job in their life that are in my classes and getting their insurance benefits through their parents insurance which already allows coverage till age 26. Between this and student loans, they have a lifestyle which doesn’t require them to work a single hour through to graduation. They do some volunteer work to feel good about themselves – which they make sure to thoroughly document on their resumes. After graduation the “Oh ^#$@” factor kicks in though. FedEx is my quasi volunteer work, given the compensation levels and the lack of someone for me to mooch off of. [/SIZE][/FONT] [FONT=Calibri][SIZE=3] [/SIZE][/FONT] [FONT=Calibri][SIZE=3]Not many FedEx hourly employees have children that will ever fall into the category that qualifies for this additional coverage -excepting white collar employees that have the income to support their kids through grad school. However, insurance costs are apportioned not on clusters of annual income received, but just across ALL employees. Since more 22 to 26 year olds will be covered by FedEx insurance in the coming months, the cost to FedEx will increase, therefore the capitation cost for each employee’s insurance will increase – regardless if they have children which would ever benefit from this potential additional benefit. This means the FedEx wage earner that has children that will never attend a grad school will be subsidizing the health insurance cost for the predominately white collar employees that would have children that attend graduate school. It isn’t massive, but enough so that insurance premiums for all employees will go up next year by a not insignificant amount. This will show in the premium amounts for “and children” in the insurance options. Those who do not have children theoretically shouldn’t be impacted by this, but don’t count on it, there will be cost shifting going on to keep the increases for those with children from being as large as they would without cost shifting occurring . [/SIZE][/FONT] [FONT=Calibri][SIZE=3] [/SIZE][/FONT] [FONT=Calibri][SIZE=3]The elimination of coverage limits will also cause an increase in the calculated expense per employee (capitation) for insurance coverage. There is no free lunch. The removal of coverage caps will result in an increase in payouts for health services, resulting in an increase in the cost of the plan and consequently an increase in the premiums levied to each employee. The increase won’t be much per employee theoretically (I’m thinking the additional cost will be in the $5 per month per employee range for this provision). FedEx already had a cap that was rather “high” (many plans have annual caps in the $250,000 range), so it won’t be impacted (theoretically) as much if the current cap was in the 6 figure range. [/SIZE][/FONT] [FONT=Calibri][SIZE=3] [/SIZE][/FONT] [FONT=Calibri][SIZE=3]The health care legislation does a lot to expand coverage, but it does nothing to control costs. All of the cost controls depend on physicians voluntarily accepting less per patient visit and reductions in charges for every medical procedure/device/pharmaceutical used – not going to happen, which the politicians already know. The next logical step would be complete nationalization of heath care – which is why I’m against what was done. When you have more being paid out, one of two things has to happen. Either FedEx has to absorb the cost (start laughter now) or FedEx will pass those costs on to the employees in terms of higher premiums for the additional benefit. [/SIZE][/FONT] [FONT=Calibri][SIZE=3] [/SIZE][/FONT] [SIZE=3][FONT=Calibri]Without any sort of collective bargaining agreement in place to protect the employees from being Fred’s piggy bank, the employees will be the ones doing the absorbing of higher costs. [/FONT][/SIZE] [/QUOTE]
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