HOW DAVE’S PLAN WOULD WORK FOR EMPLOYERS AND THE SELF EMPLOYED

Employers that have contractual obligations to pay for healthcare and retirement would have no change.  All others would be responsible for deducting the proper amount from paychecks (10% minimum with a Max equal to the current 401K cap plus $10,000 medical allowance and direct depositing it in the employee’s PBA.  They would retain the same ability and limits to make matching funds.  Again just deposit them to the PBAs. Employers will be encouraged facilitate a one time group move from their health plan to individual plans.  As management tends to be older, this is very much to their  benefit.

Employers will be encouraged negotiate their employees move en mass to individual policies. While this is in the best interest of everyone, employers, employees and insurers, there may be some circumstances where the help the agency administering the mandatory cash fund in each PBA may be sought to smooth the transition. The important principle is that everyone with employer insurance continued to have coverage.

That’s pretty much it.  Before you pop the champagne, just remember you’ll still have to compete for employees. Wages and ability to pay matching funds would come to the forefront.  Your employee’s healthcare and retirement will be  totally portable, so job hopping would be much easier.  Instead of trying to figure out a prospective employer’s health and retirement plans all the employee has to do is compare dollars.  This would definitely level the playing field between large and small  employers.  All this is as it should be.  The self-employed would come under the same 10% minimum and a Max of the current 401k cap plus 10,000 medical allowance and matching funds ability that apply to employers.

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