Urban Institute: ObamaCare is Costly
Mid-sized businesses — firms that have between 101 and 1,000 employees — would have seen a 9.5 percent jump in their total healthcare costs if the Affordable Care Act had been fully in place this year, the paper says. (Many of the law’s key provisions don’t take effect until 2014.) Small businesses would have seen their costs fall by 1.4 percent. Firms with more than 1,000 workers would have seen a 4.3 percent increase.
Sam Baker in The Hill.
In reality, small firms will get out of the business of providing health benefits to their workers. They aren’t required to; and the exchange due to open in 2014 will provide subsidies far more generous than the tax subsidy currently enjoyed by enrollees.
A terrible law with terrible effects.
“Medium-sized companies are less likely to offer health benefits than their larger counterparts, the paper says, and would therefore have to pay more in penalties. The healthcare law charges employers a fine for each worker who receives a government subsidy to buy insurance on his or her own.”
If the price of the fine is less than the price of insurance for an employee I don’t see how it would raise costs.
Small businesses would see their costs fall? Would that apply to small businesses from 51 to 100 employees who haven’t offered health insurance and will now be fined $2,000 an employee after their first 30 people?
I wonder how many small businesses are on that personnel threshold that now have incentives to reduce the number of employees.
Or individuals on that income threshold, who have incentives to inflate their reported earnings in order to join the exchanges.
…and it violates our rights to choose. Just two of the many disastrous reasons why it’s an unconstitutional law.
Simply put, Obamacare will drive up the cost of healthcare, and that will negatively affect businesses.
Obamacare aside, the healthcare system is in shambles and needs extensive work.