It has long been reported over the past two years of the negative effects and consequences that will come out of President Obama’s Affordable Care Act. Whether it’s rising healthcare premiums, companies shifting their employees into part-time hours or more taxes upon the middle-class, it seems Obamacare is already imposing substantial costs for pretty much everyone and everything.
Delta issued a letter that was obtained by Fox News that notes Obamacare will directly and indirectly contribute to a $100 million increase in the airline’s healthcare costs next year, when it is slated to be fully implemented for the United States.
According to the requirements under Obamacare, large companies are mandated to pay $63 per covered participant as of 2014. Since the private airline has approximately 160,000 enrolled active and retired employees and their respective family members – children and young adults are required to be covered until they’re 26 years old – this alone will add another $10 million to its healthcare bill.
“As we discussed, this fee, which is meant to help stabilize the state exchanges as they get started, provides absolutely zero direct benefit to our participants, the letter states. “It is, essentially, a direct subsidy from us and our employees to those who participate in the exchanges.”
The full Jun. 13 letter can be read here.
It was reported last week that the United Postal Service (UPS) announced its intentions to end insurance coverage for 15,000 workers’ spouses. The international shipping firm blamed the costs associated with Obamacare for the move. However, spouses of current UPS workers who do not work or who are not offered coverage by their own employer will have the option to stay on the current UPS plan.
More news of companies ending coverage, shifting their workforce into part-time employees and perhaps even shutting down is expected in the next few years.