Nebraska Republican U.S. Senator Mike Johanns says companies are finding that paying the fines for not providing health care is actually cheaper than providing the care for their employees. Johanns says the employees will be hurt.
“They may not get the ability in the future to stay on that plan, and that’s what every company is doing – is they’re doing this analysis and saying Oh my goodness you mean I can drop all this insurance coverage by paying this penalty, why wouldn’t we pay the penalty?”
Johanns says the Congressional Budget Office figured that most people would stay with their current health plans when they estimated the cost. He says if a number of companies drop health care and pay the fine, the cost to taxpayers will be even higher.