Companies offer benefits for three reasons:
1. For the tax breaks
2. To comply with the law
3. To get and retain employees
I read this weekend that in regards to healthcare reform, Republicans want to take away the corporate tax breaks from employers. In other words, they don’t want to give companies a break for insuring their employees. This is the same plan McCain offered up during the election. How is that a good thing?
What will happen if the Republicans get their way is that companies will stop providing health insurance for their employees and that is not a good thing. There’s an article in Time magazine that describes the horror of what happens when someone doesn’t understand the insurance for which they are paying. If you really think you could do a better job picking out your own insurance, God bless you. I, for one, don’t think I’d do a very good job of it, nor do I think I could purchase the insurance for less than what my company is paying.
What the Republicans don’t understand is if you take away employer paid health insurance, the number of uninsured will certainly be higher than 45 million. More people will need a hand from the government and no money will be saved. Leave it to the Republicans to decide on removing a tax break just when companies need it most.
In a bad economy, companies don’t need to worry about getting and retaining employees — where are they going to go? So, they won’t offer good benefits packages because they don’t have to offer them.