Companies around the country have been warning that costs will significantly increase with the implementation of Obamacare health insurance changes that are set to go into effect within a few months. Yesterday, one of the world's largest airlines published a dire warning about those inflating costs.
Delta Air Lines, based in Atlanta, has said that it estimates an additional hundred million dollars ($100,000,000) will be the cost of complying with the Obamacare mandates. In a letter that was circulated internally around Delta and then picked up by RedState, “(t)he costs imposed on Delta and our employees are very real and they are escalating.
The most notorious of Obamacare's planks are the ones driving up the costs.
- The mandate that policies must covers children up to the age of 26 is projected to cost $14 million.
- A reinsurance fee, to subsidize health exchanges, is projected to cost upwards of $10 million.
- The individual mandate, requiring coverage for all employees, is projected to cost another $14 million.
- Higher premiums and taxes for early retiree reinsurance may make up over another $35 million.
The remainder is due to additional compliance costs forced upon many businesses, though it would hurt learger companies more.
Many provisions regarding Obamacare have not been developed yet by the Executive branch, and so many companies are finding problems in trying to plan for the administrations' policies regarding governance of benefits. One thing we do know, though, is that almost every business will be forced to take an economic hit like this or drop many benefits for their employees - or worse, convert many employees to part-time workers so that they would not need to be offered benefits in the first place.