Saturday, August 24, 2013

ObamaCare Bill at Delta: $100 Million in Additional Costs

Delta Air Lines has issued a letter about the impact of ObamaCare, claiming the law's implementation will contribute to a roughly $100 million increase in health care costs next year alone, for the airline, reports FOX News.

At one point the letter states:
The ACA requires large employers to pay an annual fee of $63 per covered participant in 2014. For Delta’s roughly 160,000 enrolled active and retired employees and their family members, this represents more than $10 million added to the cost of providing health care next year. As we discussed, this fee, which is meant to help stabilize the state exchanges as they get started, provides absolutely zero direct benefit to our participants. It is, essentially, a direct subsidy from us and our employees to those who participate in the exchanges.
FOX also reports:
Another added cost comes from the requirement to cover children and young adults on parents' plans until they're 26 years old. [Delta executive Robert ]Kight reports that the change led to 8,000 more people being added to their rolls, at an annual cost of $14 million. 
Further, the individual mandate -- or the requirement on individuals to obtain health insurance -- is expected to drive more people into the company plan and drive up their costs by another $14 million.. 
Here's the full letter:


  1. If one actually reads Knight's letter, one sees that the actual "ObamaCare Bill" is $38 million. The balance is due to what Knight calls "normal medical inflation", (as forecast by who?), and the end of the temporary Early Retiree Reinsurance Program (ERRP), a temporary reinsurance program, administered through DHHS since 2010, to reimburse participating employment-based plans for the cost of providing coverage to early retirees and their dependents. So what we actually have here is a corporate parasite lashing out because one of its entitlement programs is coming to an end.

    I'm a little surprised…but not really…EPJ didn't bother to actually read Knight's letter. Before publishing it. It makes me wonder if EPJ actually verified the letter to be genuine. Or does EPJ just accept as fact anything FOX News tosses their way?

    1. So you think there is "normal medical inflation"? LOL

    2. Read the letter, parts make no sense. Young people on their parents' health care use considerably more than other young people. What? Is that because they go to the doctor when they need to as opposed to not going because they don't have insurance?