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AP Discovers Obama-Care Hurting Small Business

From the Associated Press:

Businesses seek cure for health care cost surge

Small businesses consider limiting growth, cutting services to cure health care cost surge

By Joyce m. Rosenberg | August 14, 2013

NEW YORK (AP) — A year ago, Teresa Hartnett was on the verge of expanding her small business. The company had hit $1 million in sales, and requests from clients were flowing in. She planned to transition from nearly 30 freelancers to a full-time staff of 60 by 2014. Then the reality of the Affordable Health Care Act hit. Hartnett realized she might not be able to afford to carry out her plan.

"At the end of that marathon of effort and sweat and stress, I’d face the impact of the ACA. I decided against it," says Hartnett, whose company, Hartnett Inc., transforms printed documents into digital content.

The expected surge in health insurance costs under the ACA has many small business owners changing the way they operate. For many like Hartnett, hiring and expanding is going on the back burner. Others expect to cut back on some of the services their companies provide, raise prices or cut employees’ hours and bonuses

A survey of owners taken last month by the advocacy group National Small Business Association found that 20 percent have held off on implementing a growth strategy because of rising health care costs. Thirty-six percent said they had refrained from raising salaries and 26 percent have held back on hiring

Wow, first NBC News and now the AP have discovered that Obama-Care is going to kill small business and hurt hiring? What is going on?

(Hint: the news media now think Obama-Care is now safe from being repealed. So they are moving on to pointing out its terrible flaws so they can push for a government-run single payer system. Which is what the left has wanted all along.)

The AP even goes on to chronicle in detail the disastrous effect that Obama-Care is going to have on three other businesses:

If health insurance for the employees at Havana Central’s four restaurants becomes too expensive, owner Jeremy Merrin may have to limit the number of people waiting tables and stop delivery service…

Steve Silk is ready to raise the price of Smith Brothers cough drops and health products if insurance for his 65 employees gets too expensive…

Barbara Morris has 48 employees at her company, Laser Image. She’s hoping to hire more staffers, and knows that if she does, that will force her to comply with the ACA… One answer may be to reduce employee bonuses…

To try to avoid that step, Morris says she’ll shop on the health insurance exchange that is scheduled to begin offering plans for small businesses later this year. She’s actually looking forward to it.

"That’s going to be really fun, to see what the numbers look like, what we’re going to get for those dollars," she says.

(The AP fails to get Ms. Morris’ obvious sarcasm here.)

Still, you see the point of these new revelations. The AP is now telling us that Obama-Care is hurting small businesses and hiring. So we have to go to single payer to save the economy.

So how can the Republicans possibly object? They claim to be the friends of small business. They claim to want to grow the economy.

This article was posted by Steve Gilbert on Thursday, August 15th, 2013. Comments are currently closed.

2 Responses to “AP Discovers Obama-Care Hurting Small Business”

  1. Small businesses, like CISCO (CSCO).

  2. captstubby

    ObamaCare pushing Americans into part-time work, critics say

    Fox NewsFox
    A disproportionate number of the added jobs were part-time or
    low-paying, or both. Part-time work accounted for more than 65 percent of the
    positions employers added in July. (AP) The warnings about ObamaCare from Big
    Labor and other critics may be coming true, as more evidence surfaces that
    President Obama’s health care overhaul is causing employers to prepare to push
    people into part-time work to avoid additional costs tied to the law.
    The Affordable Care Act requires mid-sized and large employers to sponsor health
    insurance for all full-time employees, which it defines as those who work 30
    hours a week or more. Big labor unions, which had been in favor of the new law,
    are now sounding the alarm against it. They argue the sticker shock from the
    premium hikes is leading businesses to offset the impact by capping hours on
    employees, despite a recently announced one-year delay in that insurance
    mandate. If workers don’t clock 30 hours a week, the reasoning goes, employers
    won’t have to offer health insurance.
    This sets a dangerous precedent that could affect millions of families across
    the United States, analysts say. But so far, the White House has brushed off the
    concerns, saying there are no hard numbers to back up the claims that there will
    be collateral damage from ObamaCare.
    “We are seeing no systematic evidence that the Affordable Care Act is having an
    adverse impact on job growth or the number of hours employees are working,”
    Jason Furman, chairman of Obama’s Council of Economic Advisers, said.
    While there may not be an official accounting of companies that are cutting,
    United Food and Commercial Workers Union President Joseph Hansen says it’s only
    a matter of time.
    “Wait a year,” he said in a recent written statement. “You’ll see tremendous
    impact as workers have their hours reduced and their incomes reduced. The facts
    are already starting to show up.”
    American Enterprise Institute researcher Christopher Conover argues that a
    review of the anecdotal evidence available leads to one conclusion. “ObamaCare
    is accelerating a disturbing trend towards a nation of part-timers,” he wrote in
    an analysis.
    Three key groups that will be hit hardest are unions, school workers and local
    government workers.
    Recently, Pennsylvania, North Carolina and Indiana have joined the growing group
    of states ready to cut their school workers to part-time status, Fox Business
    Network reports. That means hundreds of teacher aides, bus drivers and cafeteria
    workers are expected to lose hours. In California, Texas and Michigan,
    government workers including parks and recreation officials, librarians and
    secretaries could also have their hours — and benefits – slashed.
    Fast-food CEOs at Subway and Papa John’s say they are already feeling the sting
    from the health care overhaul.
    Papa John’s CEO says his employees may face reduced hours if ObamaCare is fully
    implemented. While John Schnatter has said more Americans having health
    insurance under ObamaCare is a good, he estimates the change will cost Papa
    John’s $5 million to $8 million annually. Since only full-time employees working
    30 hours or more must be covered under the new law, he said he expects franchise
    owners will be forced to cut employees’ hours because they can’t afford the
    costs of health insurance plans.
    “That’s probably what’s going to happen,” he told a group of reporters at Edison
    State College’s Collier County campus in Florida. “It’s common sense. That’s
    what I call lose-lose.”
    NBC News recently conducted an informal survey of roughly 20 businesses and
    found that they were cutting workers to 29 hours a week because of the health
    care law.
    Not everyone is buying the critics’ claims. A recent Bloomberg analysis claims
    Conover’s method is shaky. It also claims the Bureau of Labor Statistics
    household survey data that he used is “far too volatile to draw reliable
    conclusions from small samples.”
    “I think the 30-hour rule in ObamaCare is bad public policy that will eventually
    hurt full-time work, as do Conover and Graham,” Evan Soltas wrote. “In fact, I’d
    like to get rid of the employer mandate entirely. But I also believe in
    thorough, objective use of data. And they show no evidence of a part-time surge
    yet.”

     

    “We are seeing no systematic evidence that the Affordable Care Act is having an
    adverse impact on job growth or the number of hours employees are working,”

    this last weekend, i was talking to a Dollar General store manager who said the worded came down to reduce all non full time employees to 24 hours a week.

    and a Curves For Woman employee said all the staff (minimum wage to begin whith) had all their hours cut back to,usually twenty or less.

    “we can do this.”

    “change”

     

     


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