Macomb County employers say they will dump private insurance for ...

by Todd A. Heywood

The Macomb Daily with the Macomb County Chamber of Commerce has released the results of an e-mail survey about the impact of health care reform on their businesses.

According to the Daily , the survey found 23 companies would dump their insurance plans, and opt for the government penalty. The reason? Most are paying about 15 percent in their payroll costs for healthcare, but the penalty is only eight percent. For those business owners, it’s a strict business decision.

Bruce Kyle, owner of Knight Carbide, said that gap — 15 percent vs. 8 percent — presents an obvious opportunity to save “a lot of money.”

Claims coming out of Washington that health care reform would allow workers to keep their insurance, Kyle said, are misleading. Employers will make a straightforward business decision, he said, which will affect their work force.

“It doesn’t make any sense calling it a penalty,” said Kyle, whose company employs 30 workers. “Realistically … most people don’t get to choose whether to keep their plan.”

Eleven businesses said they would continue to offer health insurance, and five said they don’t offer health benefits now and if the legislation passes, that won’t change their business operations. Four firms did not respond to the question about the eight percent penalty.

U.S. Congresswoman Candice Miller, R-Harrison Township, has warned that the health care reform could result in thousands of businesses dropping insurance coverage for employees, the Daily reports. Meanwhile Democrat Sander Levin who hails from Royal Oak but represents much of Macomb county, has said he does not believe most employers will abandon providing insurance for employees.

In fact, according to the Daily, Levin says he thinks that only about 3.5 percent of people in America would end up in the pool plan, which could include a public option.

Interestingly, an August web poll by the chamber found that a majority of businesses opposed health care reform.

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