Will Obamacare be a train wreck even for big unions?

train wreck

Calwatchdog makes the case that an ill-designed Obamacare will make it cheaper for young people to not buy insurance and for employers of over 50 people to not offer it and pay the small fines instead. Calwatchdog is right-leaning libertarian with  intelligent, well-researched articles. They make some telling points about Obamacare.

The fine is a pittance -– $2,000 per employee per year –- compared with the cost of providing health insurance. This creates a gigantic incentive for businesses to drop health coverage and push their employees toward getting insurance though government-run exchanges set up by Obamacare.

Since preexisting conditions cannot be used to deny insurance coverage, a young person who, say, needs an operation simply signs up for insurance, has the operation, then cancels it.

Some big unions are saying Obamacare will increase their costs and make them less competitive. They hope for a special exemption whereby some of their workers would qualify for federal subsidies that were meant for low-income workers. if Obama grants that exemptions them Obamacare will reek of cronyism and politics too. Some unions are even wondering if they should continue to offer health care.

But the larger gripe of unions, the idea that they had no idea how sweeping this would be and how it would rock their world, is hilarious in context.

How does any of this improve healthcare and cut costs?