It came to my attention Thursday that not everyone is pleased with the results of the election. Be it the choice by the country of a new President or the changes in Massachusetts laws (we still have an income tax and now we can’t bet on dogs), but one firm in Cambridge has notified its employees that healthcare has just become more expensive.
The company – Aspiant of Cambridge – sent an email out Tuesday night minutes after the election results had been announced on the major networks, saying that the company would no longer contribute any money to employees’ healthcare plans.
I was given a copy of that email by an employee and decided to share it with my readers.
Here’s the text of that email. I’ve stripped out the addresses of the employee who provided it and also removed Aspiant CEO’s cell phone number, but have left the time stamp and all other information intact.
From: Mirko Geffken
Subject: Health Insurance Employer Contribution Elimination and Travel Reimbursement Elimination
To:
Date: Tuesday, November 4, 2008, 11:02 PMHi All,with the recent events Aspiant is no longer able to provide a health insurance contribution. This means that effective with the next payroll the employer contribution to healthcare is reduced from 50% to 0%. Also, all previously authorized travel reimbursement, including MBTA passes and all other travel reimbursements are hereby revoked.Effectively this means that the portion you are paying for healthcare will double.Unfortunately these steps are necessary because it is uncertain that future legal developments will allow for a reduction in benefits. To preempt this development this change is made effective immediately. It is likely that with the change in administration alternative health insurance options will become available that may reduce your health insurance obligation.It is also likely that our tax obligations will increase and it is unlikely that a raise in rates will be possible from our client in these economic times.If anyone is interested in researching alternative health plans (PPO only) that provide similar coverage (with maybe higher deductables) feel free to do so and let me know if you find one of interest. Please be aware that MA law requires you to have healthcare coverage, so it is not possible to drop coverage altogether.I regret having to move in this direction, but this is the partially the cost of doing business in the state of Massachusetts and the impact that future policies will have on this organization.I can only hope that future elections will provide a more positive environment for business or further measures will have to be taken.As always should you have any questions feel free to see me.All the bestMirko–
Mirko Geffken
President & CEO
Aspiant, Inc.
Cell:
Tel. (877) 527-7426 x501
Fax. (877) 527-7426
I was unable to confirm if this tactic or measure is legal under Massachusetts law. I’ve also been unable to find out what the impetus for this move was. I’ll try to chase down more of this story as it develops and find out from some healthcare advocates in the state to see if this move is legal or where the abandoned employees can get assistance.
But in a time of economic challenges, wouldn’t you think a business owner might have some compassion for his employees? Further, all contributions into these plans are still deductible on the firm’s taxes.
Maybe the guy is just being a dink because his ballot question, candidate or dog had a bad day.
If he just doesn’t like Obama, he’s still got 70 days to deal with the regulations under the old administration.
I especially like how he says that “all previously authorized travel reimbursement, including MBTA passes and all other travel reimbursements are hereby revoked.” That’s a nice touch. Hope people didn’t travel far for the company on their own dime and now can’t get reimbursed.
Also interesting is the fact the company lists two positions available on its Website and gives the following text as enticement to come work for Mirko…
Aspiant is constantly looking for highly-skilled consultants specializing in Microsoft technologies. We seek candidates with a strong desire to learn and stay on top of technologies in their line of work and look for a company that supports their ambitions.
If you are seeking a consulting position with a highly capable and team-oriented environment, please send your resume and a brief description describing what it is you are best at to:
Whatever the case, I’m sure his clients, prospective investors, family and friends will be interested to see how he treats his corporate family.
Keep reading!
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A reader asked why the CEO’s email wasn’t given and I told him I stripped out the address completely. The reason for this was to ensure that I didn’t make any mistakes by putting info back in. And because spam is such a pain these days that leaving his address out there for web crawlers/spiders and the like was just mean.
Not trying to punish anyone, just presenting interesting stories for people to read.
Just came to my attention that some companies at least have some compassion in handling hard choices. Found this story listed by a friend on Twitter.
http://tinyurl.com/5hp9sf
Without a doubt, the ongoing increases in health care costs and the rise in employee contributions for coverage definitely pose a challenge for employers. And there might be more here than meets the eye–maybe the travel reimbursements were being abused? However, the timing and method of communication here certainly reeks of sour grapes, panic, and a lack of humanity and compassion for one’s employees and their families.
The MA insurance mandate is imposed on inviduals, not employers. So you as an individual are required to have it. Employers aren’t required to provide it. However, employers of a certain size (greater than 10 employees, I think) have to pay some amount into MA’s pool if they don’t provide it.
Would you prefer he laid people off?
This guy isn’t “just being a dink because his ballot question, candidate or dog had a bad day”.
He’s being a dink beacuse he’s a dink and he’s found someone else to blame for his actions.
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nice story, jeff. Needs a follow up.
This isn’t surprising at all. For example in 2004, when IBEW didn’t like same-sex marriage changes in MA, they pulled benefits:
http://www.boston.com/news/local/massachusetts/articles/2004/05/11/union_denies_benefits_to_gay_couples/
I’m sure if we go even further back, this sort of thing is pretty common. Don’t like the law, find a loophole.
David, I agree. Am still gathering info on the situation. Have also sent a note to the MA insurance board and to a health reporter over at the Globe.
If there’s enough new info – and clear violations – I’ll see if I can do a piece for print and possibly get resources to you guys at WBUR.
Thanks for stopping by.
What this “dink” doesn’t understand is that in order to do business, he pretty much needs employees. And not just any employees, but those with talent as well. This failure (my company continues to do similar BS and is leaking employees like a sieve!) will inevitably lead to losses of the more talented employees, leaving the dead wood behind. The conclusion is either A) he/they will go out of business or get bought by a stupid company or B) he/they will learn.
Simetimes, you just gotta love the “free market”!
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God damn I hate my health insurance!! It’s getting so bad that companies don’t even want to pay for it anymore.
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I didn’t read this as a punitive measure but rather an owner dealing with public policy that has impacted his business – the source of his employees’ jobs. Having down-sized my own company during the recession of ’89, it is hard and emotional work. You have to save the enterprise to save the jobs. Sadly, the method of delviery was inelegant to say the least as these decisions should be made in person whenever possible. I can’t fault the decision, though.
Sounds like a sore loser – in every possible sense.
Hey Jeff,
Nice scoop. Looks like we may have touched a nerve, too. Here’s what Mr. Geffken wrote in the comments of Pax Arcana:
“People are quick to judge. I was forced to take steps to protect my company from a socialist, muslim administration. Barack Hussein Osama is a terrorist. His only goal is to change this country into a communist/islamo-fascist state. People that voted for him need to take responsibility for their choices.”
Nice guy. Hope he enjoys the weather in hell.
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What the world needs now is communist/islamo- fascism, sweet communist/islamo-fascism
It’s the only thing that there’s just too little of
“What the world needs now is communist/islamo-fascism, sweet communist/islamo-fascism,
No not just for some but for everyone.
Lord, we don’t need another mountain,
There are mountains and hillsides enough to climb
There are oceans and rivers enough to cross,
Enough to last till the end of time.”
C’mon, sing it with me! Everybody!
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I’m an employee of Aspiant and our CEO has offered a bonus program to make up for the lost heath coverage. Hopefully we can lay this issue to rest now.