Stateline casinos drop health care plans
By Kathryn Reed
The bulk of MontBleu casino employees will be getting their health care through the Affordable Care Act – and not by choice.
The company put a letter in employee boxes that said, “… it became clear to us that the modifications to the medical plan that are mandated by the ACA will drive up the cost for both you and the company. As such, most of our employees would be better served economically if we were to eliminate medical coverage and allow you to purchase your 2014 medical coverage on the health insurance exchange, where many employees would quality for federal subsidies.”
Medical and prescription insurance through the Stateline casino will end Dec. 31. Dental and vision will remain.
Stephen Ditchkus, general manager of the casino since the beginning of the month, chose not to speak to Lake Tahoe News. Brett Hunn, the marketing manager, also did not return a call. Employees did not want to talk for fear of retribution.
MontBleu has more than 200 employees, many of whom are low-wage earners and not college graduates.
Part of the federal law mandates companies provide health insurance starting in 2015 if they have more than 50 full-time employees. If they don’t, the company is subject to a penalty of $2,000 per employee. That penalty, though, in many cases is less than what it costs to provide health insurance to an employee.
The casino’s human resources department is set up to help people with getting on either the Nevada or California health exchange, depending where they reside.
MontBleu is not alone in forcing employees to the health exchanges. Darden Restaurants Inc., Home Depot Inc. and Trader Joe’s Co. will stop offering health insurance to part-time workers starting Jan. 1.
Caesars Entertainment, parent company of Harrah’s and Harveys at Stateline, is also eliminating health care for all part-time staff.
The ACA mandates everyone have health insurance starting Jan. 1. If they don’t, the Internal Revenue Service will penalize them.
A study released in July by Deloitte found that about one in 10 employers in the U.S. intended to ax company plans in favor of the ACA.
The Wall Street Journal reported, “Deloitte’s findings differ from estimates by rival firm McKinsey & Co. last year that found 30 percent of employers say they would ‘definitely or probably’ stop offering health insurance after 2014, as well as calculations by the Congressional Budget Office that estimated around 7 percent of workers could lose coverage under the law by 2019.”
If you read the statement in the 2nd paragraph, “our employees will be better served economically…..allow you to purchase ….coverage on the health insurance exchange, where many employees would qualify for federal subsidies.” you will see that, if you are taxpayer, you will now be paying for the subsidies.
This is not what Pelosi, Reid and Obama said when selling Obamacare. They made it sound like it was a wonderful thing they were doing but in reality people who had insurance before might not be able to get a similar policy. People who had insurance before might have to pay more. People who didn’t have insurance before will get subsidies and taxpayers will pay the bill.
Yes, this is corporate welfare at its worst. Now the corporations can simply let their workers fall off the cliff and blame the federal law. Economically better off? For who? It’s a little like the minimum wage fight. If the workers can’t actually live on minimum wage, then the job producers full well know that they will turn to food stamps. Great for the employers, they pay less and we as taxpayers essentially subsidize their underpayed workers through our taxes and safety net programs just to keep them fed so they can go to work and start the process all over again everyday.
Obamacare is seriously flawed. I was a supporter but the penalties are ridiculously low and it is irresponsible to allow these workers to be cast off like this with the rollout as it has been handled.
Delay the sign up deadline until the website is both secure and functional.
Atomic: Minimum wage was never designed to LIVE ON. It’s always been a stepping stone…mainly for kids to get their first jobs, etc. Those that think this wage should be a wage to live on should set sights much higher. If not then it’s their own choice to live in squander. Why not when this government will GIVE them free food stamps and other government controlled BS.
“Obumm-a-care is seriously flawed”…..I couldn’t agree with you more. This president is ruining our country! Make no mistake…he knows exactly what he is doing.
Like many poorly planned and poorly executed government programs, the Affordable Care Act national healthcare is another that is already causing financial harm and damage. In this case, duck for the unwelcome boomerang.
Gaspen, I lost you when you fired up the ‘Obama is ruining this country on purpose’ thing. Your credibility turns to 0 when you give in to that trash.
Plenty of adults try to live on minimum wage. Their fault? Poor choices? Perhaps. It is an undeveloped thought that assumes one knows everything about everyone’s unique battles and positions in life.
The AHA is a huge disappointment. I do believe a delayed rollout is in order with real debate from both sides. Our health care system is broken by all modern standards.
Obama and his big Corporate buddies and the big banks and insurance companies know exactly what is going on, it is history all over again.
A lot of people know intuitively that we are in a very bad direction.
WE can stop them but you people on the sidelines frettin’ need to get in the discussion and shout the progressive liberals down. Take back the truth.
Audit the Fed
This is who are putting us at the most risk.
If people are forced to pay $200 per month or more for health insurance, the results would be the same as what happened when gasoline prices doubled to $ 4 a gallon. Not only would people be spending more money on health insurance, they would stop spending that money where they had spent it before. This means that restaurants will have fewer customers. The economic ramifications will reach most industries. There will be less spending on nearly all other consumer products. This will occur as people adapt their spending habits so as to spend on their health insurance. Health insurance aside, consumer spending will drop on nearly all other consumer goods. The result will adversely effect the entire economy. From this could come a spike in unemployment. This is a very real threat to the economy.
I would prefer that my tax dollars go for socialized medical care
instead of guns and bombs that are used to protect the world Opium Trade
Bingo, Chief. I’m with you on this one.
I find it interesting that the same people who think that the ACA is ruining the country, said very little about two unfunded “wars” and an unfunded prescription drug plan that have similar effects. If I recall correctly, the VP at that time said something like “deficits don’t matter”.
IMHO, politics by the highest bidder is ruining our country. It has very little to do with party at this point.
Chief Slo, it doesn’t have to be an either/or proposition. WE the People shouldn’t be paying for either.
Funny how most people I know that are in favor of Obama care are exempt government employees and or union members.
Right you guys it’s all George Bush’s fault.
Sunriser2, I think that it is also notable that many of those who are so vociferously against the ACA also are exempt government employees (politicians). It seems obvious to me that that we have been paying for those unfortunate souls’ health care in the most expensive way possible before the ACA was passed. If there are better solutions to that problem, why haven’t they been proposed?
I’m missing where anyone suggested that the cancellation of employee health benefits by Montblue is “all George Bush’s fault”, or are you commenting on a different subject?
Also, I wonder if the Montbleu’s management team is losing their health benefits too. I assume that they would not qualify for subsidies.