Word: pays
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...pay cuts will likely garner some level of popular support and allow the Obama administration to maintain an image of being tough on corporate excess. But they do not represent a long-term solution to a potentially recurring problem. Without long-term and thoughtful policy supporting these pay cuts, what’s past will likely be prologue. There are real and persistent problems in the current system, and if the current administration is genuinely interested in securing America against economic declines of this magnitude in the future, it must engage the problem with long-term regulatory focus in mind...
...showman's flourish. For a self-described student of great men, an exodus to "the political wilderness" has afforded a chance to contemplate the perils of the club. "It's almost like, if you're going to do good things for people, Providence ordains that you have to pay a certain price," he says. "I'm still blessed, even through this nightmare. I have lived the American dream...
...Congressional-reform proposals would do little to change the current system. While some form of "employer mandate" would require employers to provide coverage or pay penalties, most large employers already offer benefits and many small businesses that can't afford them would be exempted from the requirement. Of the reform proposals that could have some long-term effect on the employer-based system, the most significant may be one that would levy a 40% excise tax on policies that cost more than $8,000 for individuals and $21,000 for family coverage in 2013. (The average total cost of individual...
...excise tax is just one of many ways the government and employers are hoping to change employee behavior. The days of paying a $15 or $25 co-pay for a visit to a specialist are slowly being replaced by co-insurance, a throwback to old-fashioned indemnity plans in which patients pay 10%-20% of the actual cost of each doctor's visit, lab test, procedure or prescription. When it comes to employee health, companies are going to stress "personal responsibility," says Kent Lonsdale, an executive vice president with the consulting firm Gallagher Benefit Services...
...With that in mind, many large employers offer so-called wellness programs, including efforts to get workers to lose weight or quit smoking. But it will probably take a long time before personal responsibility or feel-good wellness programs start to pay dividends in the form of slowing costs. Until then, employers are scrambling to keep costs from exploding further. In addition to shifting more costs to employees, companies are also turning to a host of strategies to trim what they spend for workers' insurance. More and more firms are conducting "dependent audits," weeding out enrollees who don't actually...