Here is another indicator that ObamaCare is not living up to promises. The Wall Street Journal reports that “3M Co. confirmed it would eventually stop offering its health-insurance plan to retirees, citing the federal health overhaul as a factor.” The company believes its plan won’t be competitive as the health care plan takes effect in a few years.
As explained in this blog by the U.S. Senate Republican Policy Committee,
3M’s decision to eliminate coverage for Medicare-eligibles beginning in 2013 exactly coincides with a provision in the law scheduled to take effect that year, which eliminates the tax deductibility of a federal subsidy provided to companies that cover their retirees’ prescription drug expenses.
Is this corporate inability to compete an unintended consequence of the health care legislation, or is this what legislators who voted for this plan — like Lynn Woolsey — want? You decide.