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    Over 300,000 Americans overpaid the IRS after indicating they did not have Obamacare-compatible health insurance. People who have household income below the threshold for the penalty are exempt from the individual mandate and should be refunded the amount, averaging $110, …
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  • A Remedy for Healthcare July 17, 2015
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  • MediBid: A Free Market Fix – Interview with Ralph Weber at FreedomFest July 15, 2015
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  • The American Heroin Epidemic July 13, 2015
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  • The Widowmaker: A Documentary Film July 10, 2015
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  • Brace Yourself: Large Health Insurance Premium Increases Coming 2016 July 8, 2015
    Health insurance companies want to increase their rates in the amount of 20-40% or more, since new Obamacare customers are sicker than expected. Blue Cross/Blue Shield plans hikes across the country of 23-54%. The insurance companies say that the increased …
  • Crowd-funding Helps with Medical Bills July 6, 2015
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  • A Healthy Body for Everybody – July Lab Specials July 3, 2015
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  • Colonoscopies: Don’t Flush Your Money Down the Drain July 1, 2015
    Preventative medical procedures, such as colonoscopy, are now required to be covered by Obamacare health insurance plans, as well as the anesthesia it requires. What may be more uncomfortable than the procedure itself is the price of the bowel prep …
  • Taking Control of Your Medical Records June 29, 2015
    Leaving your health records solely in the hands of doctors and hospitals is a big mistake. This gives them too much power over your information and increases possibility for errors. When you are in control of your own records, you …
  • High Deductible Plans are Changing Patient Interaction June 26, 2015
    High deductible plans are changing where patients get medical care and how they pay for it. Once a bill exceeds 5% of household income, patients most likely cannot pay for it themselves. Major employers offer high deductible plans (an average …
  • Beet Juice Lowers Blood Pressure June 24, 2015
    A small study in London showed that drinking a cup of beetroot juice significantly lowered blood pressure in hypertensive patients within six hours. After 24 hours, their blood pressure remained lower than those in the control group. The benefits come …
  • Supreme Court Decision on Healthcare Subsidies to Come This Week June 22, 2015
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  • Shopping While Hungry Leads to Poor Eating All Week June 19, 2015
    A study at Cornell University examined the food selections that a group of shoppers put in their virtual online grocery cart. The shoppers that had not eaten four or five hours beforehand selected 23% more processed junk food than those …
  • Long ER Waits Continue in Canada as Budget Cuts Increase June 17, 2015
    Lee Parker of Ottawa had to wait 48 hours in the Emergency Room before being admitted for heart attack complications. He watched other patients come in, but since there was no room for them, they lay on gurneys in the …
  • Health Benefits of Cucumbers June 15, 2015
    There are hundreds of varieties of cucumber and dozens of colors. Cucumbers are a fruit, not a vegetable, as most people think. They are a good source of phytonutrients with antioxidant, anti-inflammatory, and anti-cancer benefits. The peel and seeds are …
  • Should a Business Offer Healthcare Benefits? June 12, 2015
    Offering healthcare benefits is optional for small businesses, but is important to an employee as one of the most popular benefits in a compensation package. An employer who wishes to stay competitive with other businesses in the community will most …

Trying to duck health care’s employer rules? Don’t bother

Nothing is certain in life except death and taxes, and no time is this saying more true.  Small business owners are trying to find ways around paying the penalties listed in Obamacare for having more than 50 employees.  Some are taking drastic measures of cutting back working hours or firing people altogether.  These entreprenuers are being penalized for having prosperous businesses and running them as they see fit.

MediBid has plans available for employers so they can continue to provide coverage for their employees, but at a rate that they can afford.

Trying to duck health care’s employer rules? Don’t bother

http://money.cnn.com/2012/07/13/smallbusiness/health-care-employer/index.htm

By Jose Pagliery @CNNMoneyJuly 13, 2012: 5:10 AM ET

NEW YORK (CNNMoney) — In the wake of the Supreme Court’s health care decision, several companies with 50 or more full-time workers have embarked on a quest.

Their aim: Get below 50 and dodge the employer mandate.

The health reform law forces them to start providing insurance by 2014 or pay stiff penalties.

Kari DePhillips, who co-owns the Content Factory, a public relations firm in Pittsburgh, was hoping she could just break up the company to sidestep the rule. Maybe one firm would do marketing while the other builds websites.

The small company is on pace to exceed the 50-worker threshold in the next few years. DePhillips doesn’t want to provide health care, and she definitely doesn’t want to pay the penalty, which would be $2,000 per full-time worker minus the first 30.

“A $40,000 fine to my company would be catastrophic,” she said.

The only problem with her break-up plan is that it won’t work. The government would still consider both of her companies as one. That’s because the employer mandate penalty relies on “controlled group” provisions, focusing on who controls the company — not necessarily what they do.

It’s meant to prevent skirting around the law, said Christopher Condeluci, a Washington D.C. attorney at the law firm Venable who helped draft the rule for the Senate Finance Committee.

“These rules are intended to snuff out this type of abuse,” Condeluci said. “You cannot get around the employer mandate.”

After hearing about the little-known rule, DePhillips took another stab at it: Start a second company that never existed as part of the first.

Again, resistance to the rule is futile. The penalty only looks at who owns part or all of the company.

That rule could also ensnare smaller firms, though. A business owner who employs 50 or more at completely different companies — say, 25 at a car repair shop and 25 at a restaurant — would have to provide insurance at both, even if each falls below the threshold.

It could also affect married couples. Tax law generally assumes a person owns interest in their spouse’s business, Condeluci said. That means small business owners who are married to each other should take steps to ensure the Internal Revenue Service, which will enforce the mandate, won’t combine their staff.

“It’s difficult to navigate the tax rules, and one misstep could pull them into the employer mandate,” Condeluci said.

It’s still unclear how the IRS will enforce the rules, according to Jennifer Kraft, a labor attorney with the Seyfarth Shaw law firm in Chicago. However, any prolonged battle would have to be sorted out in court.

The other way business owners are planning to deal with the law is a devastating one. They plan to cut staff and switch full-time employees to part-time, which the law classifies as less than 30 hours per week.

That’s the reality for the 425 workers at David Barr’s nearly two dozen KFCs and Taco Bells across Alabama and Georgia. Barr has already done the math.

He currently provides health care for managerial staff only, and it costs him about $125,000 to cover the 30 who take it. Extending that to every full-timer would cost him another $545,782 a year.

Health reform’s creation of state insurance exchanges promises to bring down those costs, but Barr said any expenses even close to that will still outmatch his available cash.

“This business model isn’t meant to support those costs,” he said.

To minimize expenses, he’ll fire workers and cut hours to reduce the number of full-timers to 60. Then he’ll opt for the penalty instead of paying insurance. A $60,000 fine pales in comparison to the huge potential rise in health care costs.

Cashiers would be replaced by self-order kiosks, cooks with chicken breading machines. These options are too expensive now, he said, but they would make sense then.

But killing off jobs will also violate one of Barr’s guiding principles.

“We have a responsibility to provide a good position that allows people a sense of pride in their work,” Barr said. “And I’d rather provide that for many than provide health care for few.”

 



At MediBid, we restore market forces to medical care. Doctors get to set their own rates based on their training, experience, and outcomes, and patients get to shop for medical care across state lines and international borders. Many times with MediBid, you will find procedures that are more effective than procedures allowed, or covered by health plans. Transparency and competition are the only way to achieve reasonable costs. Many of our employer clients offering group health insurance through MediBid save $5,000 per employee per year. Those are substantial savings. Patients are saving an average of 48% vs. insurance discounted rates, or 80% vs. retail. Contact us for more information.
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