MAYFIELD HEIGHTS, Ohio - Workers for a Mayfield Heights-based company may soon find themselves without health insurance, forcing them to turn to Obamacare.
That's because PSC Metals plans to drop its health coverage for employees, online trade publication American Metals Markets reports .
AMM.com says it confirmed the information with the company CEO Robert Brewer but he declined further comment on the move.
If PSC drops its health insurance, the company would face a penalty of $2000 per employee under the Affordable Care Act.
But for some companies, that penalty may actually be a big savings, says Tom Sutton, a NewsChannel 5 political analyst and chair of political science at Baldwin Wallace University.
That's because companies pay up to $7,000 for individual coverage and up to $20,000 for family coverage. Compared to the $2,000 penalty?
"You're going to save a lot of money," Sutton says.
And that's not all. Sutton adds, "The Obama Administration has postponed the employer mandate penalty until 2015."
That means, if a company cuts its health insurance now, they have a whole year without both the insurance payments to make or the penalties to pay.
However, the good news for a company's bottom line may mean more frustration for its workers.
"I'd be really concerned," Sutton says. "In Ohio, we did not sign-on to create these exchanges at the state level."
The new healthcare law, which went into effect October 1, has been a disaster for the Obama Administration because people who want to use the federal exchange have not been able to register online because of problems with the website, HealthCare.gov .
"So you're going to be one of those millions that's trying to get into the federal website," Sutton says.
The law only affects companies with over 50 employees.
If the move works for PSC, Sutton says expect other companies to do the same.
"If this one company can get real savings and show it with low costs in the market, then other companies will follow in order to be competitive."