Karen Mills, Meet These Small Business Owners
Last week, the head of the Small Business Administration claimed she hadn’t heard one case of the president’s health care law hurting small business. After endless reports of new administrative requirements, uncertainty, tax increases, employers cutting hours, this seemed surprising. However, just to be sure the administration is listening, we asked small business owners to share their experience with the new health care law.
The responses via American Free Enterprise Facebook page tell the real story:
It has not hit yet but it will soon when it does I will not comply I will close my business before they make me buy anything I dont want or pay for something my religion will not allow he to I have a soul and plan on keeping it
Our healthcare insurance has gone up, we switched to the Basic plan, but still can not go to the doctors because the deductible is so high $6000 dollars.
We're paying more for less coverage and shifting folks to part time or perdiem employees...
We cannot hire and the company we distribute for is laying off workers. So many products are already backordered because of the reduction in workforce so we can't get product. They are also cutting r and d, so new products will not be available.
we had a great family doctor for over 12 years...he had been in the same location for over 20 years...he had to sell his practice because he could not take proper care of his employees and familys he served..foronly one reason..obamacare...I am afraid our Country is headed on a course going from the best health care system in the World to the absolute worst...
It's not the law hurting business, it's the insurance companies trying to compensate for lost profit by sticking it to their customers. The law was meant to take some profit out of the hands of companies and use it for more coverage. But the companies don't see it that way, and they are billing the law as having that effect when it's them doing it to us. As if billions in profit reduced by a few million is going to kill them.
Talking with a friend and owner of a small business. Healthcare costs them $6k a month and from what i understand, the fee for not providing their own healthcare is $3k a month. Therefore, they are going to save $3k a month with Obamacare. I could be terribly wrong here. But this is what I seem to remember.
My neighbor 3 doors east HAD a small business that provided home healthcare to a staff of almost 20. I talked with her after the election & because of the Affordable Healthcare Act, come January 1st all will be unemployed. The additional cost of healthcare is too much for her profit margin to cover, the fines would be even worse. The cost to the client for passing this mandate down is too costly for them & the insurance reimbursements are being cut with this bill. So yes, it is costing several small businesses & I fear many will be closing with jobs lost all across the nation from sea to shining sea.
One of the hospitals in our area fired, not laid off, but fired over 1300 medical professionals and technicians due to new restrictions and regulations resulting from Obama Care. None of those folks that were terminated were in the non-medical fields such as housekeeping, building or grounds maintenance, billing and accounting, or food services.
In the case of my own business that I just started this summer, I will not be allowed to expand to a point where I need to hire employees. With the existing cost of materials alone, I will not be able to produce any leather goods that folks would be able to afford should I add even 1 employee to my roster. Presently, with the healthcare plans available through several of the co-op insurance programs, that meet the OBC requirements, I will have to tack on an additional $25 to $60 per item that may company produces as regular stock items in order to provide the minimum healthcare to just 1 employee that would be working at minimum wage at 30 hours per week. That's in addition to the basic overhead one already has to cover for unemployment insurance, work comp insurance, etc. The end result would be me going out of business because no one in their right mind would pay $50 to $100 for something that I currently sell for $16, with a 2% profit margin.
Small businesses are hurting because of all the regulations, taxes, and limitatioins foisted on them by the government. Now add increases everywhere including Obamacare and a lot of small businesses will go under.
I have a sister-in-law that manages a Sizzler franchise had an employee that voted for O and told her he was so excited now because he was going to get benefits for him and his family... she said through tears to this employee that she was informed from HQ the she has to cut his hours to 20 hours a week because of Obamacare. His reaction was "I cant live on 20 hours a week!" her reaction to him was "no one can"
The retailer my sis works for had told them they are dropping health insurance and will pay the $20000 per employee fine instead. It is cheaper for them and now sis has no coverage.
I don't work for a small company but Obamacare has already impacted me. They took away over the counter drugs from my FSA account last year and this year they set a max of 2500 per year and next year they will do away with FSA accounts all together. That is a TAX increase for everyone with a FSA (pretax medical savings account).
Restaurant chains are reducing employee hours to part time to avoid paying for insurance. It's just begun. I work for a large NGO, our costs have gone up 15%. Deductibles have gone up, co-pays too.What most of Obama voters don't get is that they won't "get" coverage, they will be FORCED to buy their own or be fined. Clueless. Let others be responsible for you, just gives them POWER over you.
Our companies health care rates went up by 55% which I was told by the company that it was mostly due to Obamacare.
We have 48 employees. If we expand or want to hire more, we can't afford it. 50 is the magic number...How's that for encouraging business growth?
My Business Model changed to working with only independent contractors since 2009. Previous to that year, I had up to 8 employees since 2006. With unemployment taxes, WC insurance premium hikes, private insurance rate hikes, and all the crazy taxes the state of CA imposes on all businesses, and LETS Not mention the unstable purchasers... I just will not employ, contract only.
My mother is in private practice and the new regulations have essentially forced her to close.
Its the uncertainty that is hurting us right now. We'd like to hire an $18.00 hour experienced HVAC tech right now, but we are waiting. We don't know what is going to happen with the fiscal cliff, nor do we know with 100% certainty what is in Obama Care. Its especially bad here in WA state because of our already strict health insurance laws. Employers have to provide the same insurance policy across the board from the owners all the way down to anyone who has been on for more than 90 days and who works only 20+ hours per week. So if the head CEO has a $1000.00 Blue Cross plan, you have to give that same plan to any and all employees working 20+ hours. We are also required to pay at least 50% of the plan.
We don't mind providing health insurance for our employees, it helps attract talent. As a matter of fact all our employees used to have an awesome Blue Cross plan for which we paid 100%. But since the recession, we haven't been able to do that. $800.00 per employee per month is too steep right now, while we are still hurting from the recession, and with infalation starting to rear its ugly head.
We have several stratagies in mind if we are forced to provide health insurance at this vulnerable time in our business and the economy. First, we can start employing part time for those just starting--those we don't know if they can cut the mustard, no more than 19 hours a week until they prove they can and will work satisfactorily. Next we will pick a fairly cheap plan, and we will make our employees pay for 50% of the insurance, and it will come at the cost of lost raises for them. Bottom line: less money in the employees pocket. It sounds harsh, but right now that's the only way we can keep working. And I know we are not the only business who will employ these strategies.
Unfortunately, the lost revenue will keep us from being able to invest in the company as much, making our recovery from the recent recession slower. That's a broad statement, but what it basically means is that there will be less money to spend on advertising for more work; less money for good tools to help do the job faster, better, and probably safer; less money for new tools to help us branch out and broaden the services we offer, and so on. What it adds up to is stagnation or even contraction of our business, and possibly the economy at large.
I own a small business and it is getting harder and more expensive to open the doors. I won't be a small business owner for long, I can't last another four yrs under Obama
I'm a small business owner and we are having to drastically strategize to survive, including cutting back production.
To small business owners, read the law. Over 50 full-time employees? Turn them all to part-time...or get ready for a world of financial pain.
affordable health care now costs my company 16 percent more to insure me. My company went with a lower premium so it only went up 3 percent but my deductibles have gone up to 5000 and 10000. MY copays have also gone up. Somebody has to pay for this free healthcare.
It kept me from hiring an employee part time. Plus the company my wife worked for let her go and hired part time help so we are without insurance for the first time in 42 years.
It makes me glad that the construction industry typically contracts. Simply can't afford to hire people as employees. The only way to do it is to contract workers since these regulations kill any upside hiring employees would have.
As a book keeper of two small businesses, One just shut down with this final nail in the coffin, and all employees are gone with the other. No more outside employees. Can't afford it and afraid of what else is coming after all the new EPA standards dished out on a daily basis.