Delta Air Lines, Inc (NYSE:DAL) appalled by Obamacare impact

Posted by Ryan Mandell August 26, 2013 0 Comment 1003 views


Delta Air Lines, Inc (NYSE:DAL) has warned that Obamacare will drive a $100M rise in healthcare costs. The airline has now issued an urgent-warning about the Obamacare impact. It has claimed that implementing this law will result in this level of rise in healthcare costs in 2014 alone. Robert Kight, the Delta executive had made mention of this shocking figure in a letter to Obama administration officials. RedState.com, the website was the 1st to get and publish this letter last week.

A Delta representative also confirmed that the letter was authentic. In his original letter, Kight has disputed the notion that this law will just be “business as usual” for big companies. A major chunk of this law will take effect at the beginning of 2014. He claimed that a combination of factors will result in an increase of healthcare costs by almost $100,000,000in 2014.

The catch

He said that a portion of that are the regular medical inflation as well as the phasing-out of the assistance program that is tie to the healthcare law. However, he also claimed that a large segment of it comes from the different costs and fees that are associated with implementation of this law. One of the most-expensive items is the annual-fee of $63/covered participant, in 2014.

DAL has estimated that this will mean that the company will have to bear expenses over $10M next year alone. The catch is that most of the company’s employees insure through DAL. This means that the fee that is supposed to help subsidize the healthcare law’s coverage, results in a “direct subsidy” from the same company that eventually provides the zero direct-benefit to the participants.

Peripheral benefits

One more additional cost comes from another requirement in which young adults and children are also covered through their parent’s plans until they are 26 years old. Kight has reported that this change has resulted in 8,000 more employees being added to the company’s roll at a $14 million annual cost.


About Ryan Mandell

Ryan Mandell is our senior staff writer covering the White House for Political Report, Ryan also coordinates with the main newsroom news items and contributing write-ups on cultural, social and political activities. Ryan holds an undergraduate degree in journalism, a Doctorate in international relations and a Master Degree in mass communications with an emphasis in print journalism. Ryan also covered the International Society of Social Defense congress in Spain in 2007 and taken part in the Global Forum on economic policies

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