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Title: Blog by Novelist William S. Frankl, MD

Obamacare Threatens Retirees and Their Former Employers

Millions of retirees with prescription drug coverage from a former employer will likely see their coverage dropped or changed as companies prepare to offset the new taxes that are part of the new Obamacare law. This new bill rescinds a profitable tax break first proposed in 2003 to entice companies to continue offering drug benefits for their employees. Companies were permitted to write-off a tax-free government subsidy of twenty-eight cents for every dollar spent on these employee programs. Thus, hundreds of companies have taken a tax deduction for the cost of the prescription drug benefits for their retirees. These benefits kept many retirees off the Medicare Part D rolls. With the passage of Obamacare, two million or more retirees are likely to lose their prescription drug coverage. So, if companies offset the tax by cutting the drug benefits of their employes, the Medicare rolls will swell, placing more financial stress on a program from which $550 billions have been cut by Obamacare and which faces certain insolvency.
Welcome to the age of Obama.

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