13% vs. Obama's 8%

The average health insurance premiums adds 13% to employers’ payrolls around the country. You know, this is the healthcare that you want and have come to trust, and it’s why you negotiated or tolerate a smaller take-home pay from your employer. If Obama gets his way with the healthcare option, and fortunately that’s still questionable, employers will immediately see a 5% overall average savings.

How’s this you ask? Well, you may think your employer is quite proud of the benefits they offer you, but they cut from their profits. Since many Americans work for small businesses who work on tight profit margins, they are always looking for ways to cut costs to maintain their profits.

Under the Obama healthcare plan, Employers will be forced to pay an 8% payroll tax to cover the national (Obama) insurance plan if they don’t cover your healthcare benefits. Obviously, an employer is going to realize 8% is less than 13%, and adds to instant savings. Most small businesses will opt to drop their employee healthcare plans and force employees to the government plan.

This may sound like a good idea at first, but employers need to be warned this is a tax on their payroll. While they may see instant savings, this is a tax. Once the cost overruns start with the Obama healthcare plan mess, you can count on this 8% increasing, and there is a good chance it could rise beyond 13%. Instant gratification often feels good in the short term, but remember further down the road it usually ends up biting.