Meghan Noecker wrote:
> On Fri, 24 Mar 2006 20:57:45 -0500, Dave Smith
> <[email protected]> wrote:
>
>> Meghan Noecker wrote:
>>
>>> Minimum wage is NOT going to fix the problem.
>>>
>>> First of all, minimum wage is for starter jobs. Everybody has to
>>> start somewhere. They are not meant to be lifetime jobs.
>>
> Most of the businesses complaining are those that hire starting
> employees, hence the minimum wage. And the cost to the company is
> higher than the wage. For example, the employer pays a fee for health
> coverage (if they offer it). That fee is based on the wage, so that
> also goes up when the minimum wage goes up.
>
Ahem. You don't know a damned thing about group health insurance. The
insurance premiums are *not* based on employee wages. It's called "spread
of risk". Premiums for group health are determined based on the number of
lives to be covered, not on what they earn. The premiums do not increase if
their wages go up. The premiums are also based on the level of risk of the
business.
Ask me how I know. I'm a licensed health insurance agent and worked for
years in the business in one form or another. If you have a company of 30
people, the spread of risk (to the insurance company) is lower than if you
insure a group of 5 people. Chances are 1 out of five are going to have a
major health problem. On the other hand, 1 out of thirty, better odds.
Jill