We are self insured and Obamacare nor anything else changed our deductibles and out of pocket costs other than corporate deciding to. We were nowhere near the “Cadillac” level either way...
FedEx Freight | Cost of healthcare
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We are self insured and Obamacare nor anything else changed our deductibles and out of pocket costs other than corporate deciding to. We were nowhere near the “Cadillac” level either way...
Yes, we were. And Cadillac tax hit self-funded plans too. The whole idea was to soak the "rich companiesa" and use these new taxes to pay down the cost for the new members of Obamacare.
Once Obamacare came to fruition, companies had to pare back their health benefits lest they be subject to the onerous "Cadillac Tax". Unions had an execemption.
Soon we all will. Then it will be interesting if FedEx healthcare improves or costs go down.
Link - https://www.cigna.com/health-care-reform/cadillac-tax
Negative, grasshopper. Of course we were "told that", but the reality was slightly different.
We looked into this at the time and found that there was not a real danger of crossing the Cadillac line. This (below), copied from the old "debate thread" show some actual numbers... Comparing our (then) $500 deductible plan to a zero open market plan.
*Quote:
"While you numbers are interesting, they don't include the numbers in between 2002 and 2015. The big escalation of cost occurred during that time, and Company cost only declined recently with the reduction of the insurance benefit. Prior to 2013, the employee cost increased within a "zone of reasonableness.
As for the 24k +/- figure, let's review:
2012 insurance card:
Now the cost to closely duplicate the coverage in 2015:
$24,960 with zero deductible...
Now if I can buy that in 2015, we must agree that the Company (in 2012), was able to provide that 2012 coverage for less than the $24,960 quoted. Thus the ballpark figure of 24k (minus the employee portion)
The point is: BETWEEN 2012 and 2015 the company saved significant sums, while reducing the benefit value significantly.
The above example also makes clear the fact that our insurance never pushed the Cadillac Tax threshold."
Dsh, I'm assuming you are familiar with the entry in box 12 DD on your W-2.
Not picking on you Man, just sharing what we already covered, in depth. I could show more, if needed, when time allows...
I'm pretty sure the self insured is for accidents and injuries on the job not employee health insurance.
I can't speak for FedEx but I know Averitt, SEFL and Pyle are all self insured for their health insurance. They hire insurance companies to manage it for them like blue cross or cigna.
Crazy Trucker
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Actually, self insured for health too. They pay Cigna, Blue Cross, or whoever to administer the plan.
Thanks Swamp
Thanks Swamp I didn't know for sure about the healthcare side of it.
The Cadillac Tax was scheduled to take effect in 2018 and then pushed to 2020.Negative, grasshopper. Of course we were "told that", but the reality was slightly different.
We looked into this at the time and found that there was not a real danger of crossing the Cadillac line. This (below), copied from the old "debate thread" show some actual numbers... Comparing our (then) $500 deductible plan to a zero open market plan.
*Quote:
"While you numbers are interesting, they don't include the numbers in between 2002 and 2015. The big escalation of cost occurred during that time, and Company cost only declined recently with the reduction of the insurance benefit. Prior to 2013, the employee cost increased within a "zone of reasonableness.
As for the 24k +/- figure, let's review:
2012 insurance card:
Now the cost to closely duplicate the coverage in 2015:
$24,960 with zero deductible...
Now if I can buy that in 2015, we must agree that the Company (in 2012), was able to provide that 2012 coverage for less than the $24,960 quoted. Thus the ballpark figure of 24k (minus the employee portion)
The point is: BETWEEN 2012 and 2015 the company saved significant sums, while reducing the benefit value significantly.
The above example also makes clear the fact that our insurance never pushed the Cadillac Tax threshold."
Dsh, I'm assuming you are familiar with the entry in box 12 DD on your W-2.
Not picking on you Man, just sharing what we already covered, in depth. I could show more, if needed, when time allows...
From https://www.commonwealthfund.org/publications/issue-briefs/2016/jun/looking-under-hood-cadillac-tax
And look what they included in amount towards the Cadillac Tax:
The Affordable Care Act’s high-cost plan tax (HCPT), popularly known as the “Cadillac tax,” is a 40 percent excise tax on employer plans exceeding $10,200 in premiums per year for individuals and $27,500 for families. The tax is scheduled to take effect in 2020. Employer and employee premium contributions will count against the threshold, as will most employer and (pretax) employee contributions to health savings accounts (HSAs), Archer medical savings accounts (MSAs), flexible spending accounts (FSAs), and health reimbursement accounts (HRAs).1Guidelines for determining which coverage is taxed are partly subject to interpretation by the Internal Revenue Service (IRS); the information provided here reflects the most up-to-date guidance.
NO company wanted to wait till the last minute to see how they would be affected so they started paring back when the legislation was announced. And it's not hard to see with healthcare costs rising each year to cover more and more federal mandates combined with the inclusion of employee HSA and HRA towards each company's Cadillac Tax tripwire, that healthcare coverage would be paired back and the employee cost would rise.
Getting rid of Obamacare completely would allow the markets to readjust and costs to rise or fall more in line with market forces as they were prior to Obamacare.
Dick Dastardly
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If they're self insured then yes, they're making money selling you a plan.
Let me point out that this part:
Employer and employee premium contributions will count against the threshold, as will most employer and (pretax) employee contributions to health savings accounts (HSAs), Archer medical savings accounts (MSAs), flexible spending accounts (FSAs), and health reimbursement accounts (HRAs).
The Democrats put this in there as strictly a punitive measure. This alone ensured that companies could NOT keep their existing plans and have the employees make up the difference even if they wanted to. This one little line in the act made sure that companies could NOT have great insurance for the same price. It forced companies to reduce their coverage so much so that the combined employer/employee contribution AND the employee HSA/HRA/FSA accounts would not force the employer coverage to go over the Cadillac Tax threshold and incur a 40% penalty.
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Dick Dastardly
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Pre shift 101: Selling the simpleton on the screw job.
Dick, it must be tough to go through life as a dumbass. But, somehow, you seem to have perfected it.
Did you graduate grade school? If you did, which one? I'll be sure to put the name on social media so other parents can avoid the area.
NO, we weren’t either. Line 12 DD on your W2’s shows how much was spent and in most cases it’s definitely NOT at the threshold. Single coverage showing $5,200 on my statement for last year... That’s not exactly bumping the $10,200 threshold.....
The democrats also required the employees to put the amount spent by both on line 12DD to make people see through the BS some companies used to sell jacking up deductibles and out of pocket costs due to the Cadillac tax that in many cases wasn’t a result of the ACA but more due to corporate greed.
The democrats also required the employees to put the amount spent by both on line 12DD to make people see through the BS some companies used to sell jacking up deductibles and out of pocket costs due to the Cadillac tax that in many cases wasn’t a result of the ACA but more due to corporate greed.
Dick Dastardly
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I wonder of you'd be able to enunciate any better if your parents had been second cousins instead of first?
No company wanted to wait till the last minute??? Nonsense. Many companies have STILL not reduced coverage or increased employee costs. I guess we were done a huge favor by being charged more for less, several years early... Gotta love that logic.
NOT going to rehash the whole thing, but again a clip from the past might shed light on the reality.
From Sept. 2015:
"W-2 box 12 DD for premier is $14705.88 vs $12683.16 for choice. A difference of $2022.72 in total value.
Now then, the employee portion is $3384 vs $768 (per plan summary). A difference of $2616 in employee cost.
All this helps us to prove that the value of the top shelf insurance we once had, which was valued close to 24k, has declined and the value of our current (top shelf?) plan is 14.7k.
Can we see the "cost savings" to the Company in the form of a compensation cut? Also the Employee cost when up significantly for the Premier plan, while (to be fair) the cost for the Choice plan did go down to coincide with the lower value"
Now, to keep things in perspective, 2017 W-2 shows $14258.88 for FAMILY coverage.
* side note: The extreme flaw in the whole Obamacare fiasco, which we likely agree, is the mandated coverage for pre-existing conditions. Insurance, by definition is meant to cover what may happen, NOT what has already happened. Also, it was designed to fail, justifying single payer (Government) health care, as private insurers opt out.
Crazy Trucker
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Facepalm you're the one selling mis-information, yet you're calling someone else stupid.
Dick Dastardly
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Facepalm you're the one selling mis-information, yet you're calling someone else stupid.
Well he's a redshirt so.....
Redracer3136
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I hate to be the one to burst your bubble but you’re pissing in the wind bro!! Haven’t you heard that truck drivers know EVERYTHING...every nuance, every loophole, all the in’s and out’s...even though most healthcare experts couldn’t figure out Obamacare!!??!!
After all, there’s a reason why most healthcare companies have consolidated (perhaps they should’ve hired truck drivers to run their companies instead)...and where I live (in NC), there’s only one company left (BCBS) that even offers Obamacare, the rest quit!!
Now we have “some people” who somehow believe being self insured is a lucrative deal!! If that were the case, wouldn’t every company be self insured??