Dumb question on healthcare bill...

[riverdeep]

I've been keeping an eye on the proposal by Democrats but haven't really sunk my teeth into it, hence the title.

As I understand it, the main proposal is going to be a public option. That is, an individual has the choice of keeping their present healthcare or signing up for the government-run plan. They also say they would encourage employers to keep on offering healthcare to their employees. Well, since healthcare is a major expense for employers and growing every year, what's going to keep employers from keeping healthcare on?

If company A has taken out healthcare and is making a profit or greater profit while company B is offering its employees healthcare and has reduced profits or is in the red, aren't the market forces going to favor those companies that emulate the practices of company A in the long run?

[Oregone]

1. Which company will attract the best workers?

There is a natural market incentive in business to offer perks to workers. Businesses that slash perks in favor of profits (which are funds not needed for operation) end up with shitty workers.

[riverdeep]

3. Lots of companies make huge profits treating their workers like crap.

Look at Hell-Mart.

[Oregone]

4. And thats a fine example of a company with low-grade workers

Some companies depend upon high-quality labor, and use perks (like healthcare) to attract better workers. In the long run, this business model operates on the concept that they will have more revenue and growth (Costco/Trader Joe's use this model effectively).

Some companies dropping their healthcare won't spur a mass movement. Rather, others see this as an opportunity to get better workers.

BTW, in countries with single-payer healthcare, employers still offer to cover public premiums and additional plans as perks

[riverdeep]

5. But Wal-Mart is the biggest corporation in the wolrd.

For someone who is only looking at profits, that is not exactly discouraging. They get workers that are good enough and that seems to be working for the bottom line.

[Oregone]

6. Walmart doesn't need high quality laborers

Their inventory is cheap. They operate on volume. Its a completely different model from Trader Joes, who sell more expensive and quality items and have knowledgeable staff that can help sell this or that (with great attitudes too). BTW, Trader Joes does FANTASTIC in terms of growth and profits

Wal-Mart success isn't a de facto declaration that their tried and true practices are the optimal business model for any and every business and industry.

[Skink]

2. I'd say take the onus off employers and allow the market to compete only with the Governmnt.