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:
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

Fred Fleitz: Homegrown Terrorism on Rise

Tuesday, 21 Oct 2014 14:58 PM

A horrifying attack in which two Canadian soldiers were mowed down by a car near Montreal was a terror attack inspired b . . .

Ministers May Be Jailed for Refusing to Perform Gay Wedding

Tuesday, 21 Oct 2014 14:52 PM

Two Christian ministers have been told if they refuse to perform same-sex weddings, they could be subject to a $1,000 fi . . .

Kaiser: 89% of Uninsured Don't Know to Sign Up for Obamacare

Tuesday, 21 Oct 2014 14:03 PM

Obamacare administrators are promising a better sign-up experience for the plan's second annual enrollment period that o . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

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