Wednesday, March 08, 2006

NYS health care bill

Legislation would shift costs of health care to companies

ALBANY, N.Y. -- The sales clerk at The Gap, the perfume lady at the department store and the Wal-Mart Stores Inc. cashier would all get health insurance from their employers under a bill announced Tuesday, shifting the cost of skyrocketing health care in many cases from taxpayers to big businesses. The bill would make New York one of the first states requiring companies to provide health insurance for full-time employees.
The legislation, which has bipartisan support in the state Legislature, would apply to businesses with more than 100 employees and could affect 450,000 workers in the state.
Under the bill, companies would have to spend an average of at least $3 per hour for health benefits for their work force. State Sen. Nicholas Spano, a Westchester Republican and sponsor of the bill in the Legislature's upper house, compared the legislation to setting minimum-wage standards.

Under the projections in this article, the cost to these corporations will be $2.5 Billion. (4o hrs. per week X 50 weeks per year X $3 per hour X 450,000 workers)

And since this only applies to full time employees, I imagine the next headline is, NY unemployment grows by 450,000 as all of these workers will simply have the hours cut.

1 Comments:

At 3:06 PM, Anonymous Thomas Pfau said...

Well, unemployment wouldn't grow by quite 450,000. If the average hourly pay rate of those employees is S and the employers wanted to keep their total outlay at $2.5e9, then the new number of employees would be (450,000 * S) / (S + 3). If the average pay rate is $12/hr, then 90,000 would be laid off but the other 360,000 would get their free health care. If the benefit is only for full time employees, employers could shift some of their people to part time to avoid paying for their health care. Either way, a lot of people would be getting screwed by either losing their jobs or taking a pay cut. This doesn't help them get health care (unless losing their job makes them elegible for Medicare).

BTW, the lower the average pay rate, the more people get hurt. If the average pay rate is $9, 112500 would lose their jobs. At $7, it's up to 135000. So, those who can afford it least would get hurt the most.

 

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