Interesting Obamacare updates

[Left Seater]

Many small businesses are revising their Obamacare cost estimates down in a substantial way. They see their portion of the cost of Obamacare going down dramatically. The reason for this is due to their employees telling them they will choose to pay the tax penalty instead of the mandated insurance.

Popeyes for example already offers insurance plans to their workers. Their cheapest plan currently costs employees $2.50 per week for an individual. This plan will go away under Obamacare because of the mandated minimum coverage in the law. Instead the lowest plan Popeyes will offer will now cost $25 per week. This is a ten fold increase in premium cost to the employees who already decline insurance more than 50% of the time. Most have indicated to Popeyes they will continue to decline the coverage and instead choose to pay $95 in additional tax in their 2014 return. For most this will just reduce the amount of their refund. Even as the tax penalties rise to $695 for 2016 most employees have indicated they will still decline the insurance coverage.

While this is good for business and small businesses especially, it isn't good news for us as tax payers. We are already seeing the cost of Obamacare rise as states have opted to not set up their own exchanges. Instead, since the Feds didn't allocate any money for these exchanges, states are just passing that cost back to DC. Add to that companies with Cadillac plans looking to bring many basic health care functions in house.

So to those who support Obamacare, how do we get people to buy the insurance? Also, what is the real cost of Obamacare and when does it stop rising and deliver the promised savings? Do we still treat those who opted out at ERs when they are sick or add them to Medicaid?

And to those who don't support Obamacare do we just pay the premium for those who choose not to or can't? This would end up costing far less than having Obamacare and folks who don't participate.