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  • Ways and Means Hearing: Obamacare Is Bad for Business

    Last Thursday, Treasury Secretary Tim Geithner sent a letter extolling the impact of Obamacare on small business. Geithner touted small business tax credits and the creation of health insurance exchanges as ways to enable a greater number of employers to offer health benefits.

    But reality tells a different story. A day earlier, the House Committee on Ways and Means held a hearing to unveil the effects of the new health care law on businesses. Testifying before the committee were employers and economists, and their message was simple: Obamacare is bad for business.

    Small businesses currently face an uphill battle to offer insurance to their employees, and the climb is becoming progressively steeper as insurance costs continue to rise. Obamacare will make these obstacles even more daunting.

    The new law creates tax credits to assist small businesses in covering their employees, but only a small number of businesses will qualify for any assistance—and the credits expire after only six years. Joe Olivo, who owns a business of 45 employees, told the Ways and Means Committee that he was not eligible for the credit at all. Even a business hiring just 18 employees and paying, on average, $38,000 would not qualify, he said. The credits sound good on paper, but in reality, they do not provide a wide-reaching, permanent solution to the problem.

    Geithner also points to the new exchanges, through which small businesses will be able to provide insurance for their employees beginning in 2014, as a way to expand access to lower cost coverage. But the health plans in the exchanges are likely to remain unaffordable for small employers as a result of Obamacare’s many provisions that will raise premiums.

    Obamacare will not only make it more difficult for small businesses to offer insurance; it also includes many provisions that inhibit job creation and economic growth. As Ways and Means Chairman Dave Camp (R–WI) iterated, “New mandates and regulations will deter [businesses] from hiring new employees, threaten their ability to retain existing workers, and harm their ability to increase wages for existing employees. The new health care law compounds the uncertainty employers and entrepreneurs are facing amid the most challenging economic climate since the Great Depression.”

    New mandates and penalties will increase costs for businesses, reducing their capacity to keep existing jobs or create new ones. The new law also creates burdensome new regulations for employers, of which the 1099 provision alone will result in significant new paperwork. Said Olivo, “This is a huge requirement that I do not have any sort of system in place to account for … calculating and collating receipts for purchases of thousands of items and services.”

    Business owners operate small firms with the intention to grow, but under Obamacare’s harmful provisions for small business, this will become even harder. Full repeal is the only way to achieve health care reform in a way that helps businesses create jobs and provide health benefits for employees.

    Posted in Obamacare [slideshow_deploy]

    5 Responses to Ways and Means Hearing: Obamacare Is Bad for Business

    1. Pingback: Ways and Means Hearing: Obamacare Is Bad for Business | Fix Health Care Policy

    2. Pingback: AntiObamaBlog.com » Ways and Means Hearing: Obamacare Is Bad for Business

    3. Dennis Georgia says:

      Gethiner is just a pawn to obama, he will say or do anything to futher the cause of a welfare state and and a socialist style "guvment". Small business is the back bone of this country, they have been beaten down with regulations and laws that are useless all in the name of "guvment". It is stupid to see them so burdened down with "guvment". The total repeal of this thing called health care and roll back of all the regulations impose by the czars and the EPA is the only way for this country to survive. Once this is done then we need to work on green energy but not with "guvment" controll and tax payer money. The useful energy will meet its own demand and cost as it is improved and used by the people.

    4. Scott Carver says:

      This isn't news, at least to the people of this country. "Obamacare" is the worst piece of legislation that has ever been passed in this country. It is a flat out lie to the American People wrapped up in a "good intention". It is wasteful, and cannot even begin to do the things they claim it will do.

      If America want's real medical coverage reform, I have a couple of quick suggestions that might actually make sense.

      Tort Reform. Eliminate the outragious and over the top awards for malpractice claims. These awards are the reason medical treatement is so expensive. Doctors and hospitals have to pay enormous amounts of money for malpractice insurance, which get's transfered back down the line to the patient.

      Guaranteed Malpractice Insurance. Many smaller communities have lost their local practitioners because those doctors have had to join larger hospitals in order to be able to afford their malpractice insurance. If those same doctors were guarenteed malpractice insurance at a reasonable cost, I'm betting a large number of General Practitioners would return to the smaller communities and reopen their practices. This would provide local care, eliminating the need for many people to drive long distances to get minor medical care. It would also bring people back to the medical field. Local care, by a practitioner you know, is one of the foundations of a healthy life. And the healthier people are, the better.

      The one thing I do think the Government needs to invest money in is the Tele-Doctor system. Doctors need a dedicated internet type system that allows them to consult with specialists in larger hospitals when dealing with something outside their area. This system needs either a priority fiber-optic landline system, or a priority sattalite system. This would allow for rapid consultations and treatment of injuries/diseases outside the training of the General Practitioner.

      Recap:

      Guarenteed Malpractice Insurance at a reasonable cost.

      Serious Tort Reform putting a cap on outragious compensation awards

      Increased funding for "Tele-Doctor" system to give small town doctors access to big city specialists.

      Makes sense, and probably a lot cheaper the "Obamacare".

      Any comments?

    5. Spiritof76, NH says:

      Geithner is the resident tax cheat running the Dept. of Treasury. He will say and do anything to hang on to his post, destroying America in the process. Just think, our first Secy. of the Treasury was Alexander Hamilton and he was trying to build up America.

      We need to get rid of this crowd in the current administration for the sake of our country and the future of our kids and grand kids.

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