Small Businesses Figure Out How to Cope With Obamacare

Thursday, 24 Apr 2014 02:31 PM

By Melissa Clyne

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Many small-business owners are studying their strategies for coping with Obamacare, The Wall Street Journal reported.

Small businesses have until 2015 or beyond to begin providing health insurance coverage to employees under Obamacare. One course of action is paying the $2,000 federal penalty for each full-time worker after the first 30, while others include cutting employees’ hours and reducing the number of employees to fewer than 50 full-time workers, the threshold for having to provide coverage, according to the Journal.

"You've really got to run the numbers and find out what's going to work best for your bottom line," Melinda Emerson, chief executive of Quintessence Group, a small-business consulting firm, told the Journal. "You don't want to wait and then have to make a drastic cost increase to your customers or make a significant reduction to your labor force" when the law's provisions take effect. You want to do that gradually."

Businesses with fewer than 50 full-time employees account for 96 percent of all U.S. employers, according to the U.S. Small Business Administration.

In 2010, President Obama predicted that his signature legislation would save employers so much money that they could give their employees a raise, according to a March USA Today op-ed by Tim Phillips, president of Americans for Prosperity.

Not true, according to Phillips, who cited a February report from the Centers for Medicare and Medicaid Services that estimated that two-thirds of the country's small businesses will see their healthcare costs increase due to Obamacare.

"This will translate into higher health insurance premiums for 11 million employees," he wrote.

Earlier this year, Republican House Speaker John Boehner characterized the federal estimates for rising health insurance premiums as "another punch in the gut for Americans already struggling in the president’s economy," according to The Daily Caller.

Related Stories:

© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Study Links Polar Vortex Chills to Melting Sea Ice

Tuesday, 02 Sep 2014 20:41 PM

Remember the polar vortex, the huge mass of Arctic air that can plunge much of the U.S. into the deep freeze? You might  . . .

Netflix: Local Governments Should Set Up High-Speed Web Networks

Tuesday, 02 Sep 2014 19:35 PM

Netflix, the company that streams movies and original programming over the Internet, has weighed in on a petition to the . . .

Sen. John McCain on ISIS: 'Kill 'Em'

Tuesday, 02 Sep 2014 20:22 PM

Sen. John McCain on Tuesday joined a growing chorus of Republican lawmakers saying that the Islamic State group (ISIS) m . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved