The government is going to destroy thousands of businesses. The House bills re healthcare reform under consideration result in disastrous disparate treatment of businesses and small business owners. Thousand of businesses will go under, leading to massive unemployment. Let me explain what everyone seems to be missing.
The legislation under consideration mandates businesses with a payroll of $400,000 or $500,000 or more to pay insurance premiums for employees. The size of a compan;s payroll is not an indicator of whether the company makes money or the size of its profit margin. Remember, regardless of the size of a compan-s payroll some barely break even, some make a modest profit.
Furthermore, businesses that are labor intensive, typically in service industries, that is with more employees rather than fewer, will be decimated by this legislation. Let me provide an example. Assume you have a company, like mine, with 150 employees all who make between $8 and $10 per hour, that generates about $150,000 in profit, and you have a company of 20 employees that generates $150,000 in profit.
The result of the healthcare legislation is that a company like mine will be mandated to pay $360,000 ($200 per month per employee for insurance premiums) per year in insurance premiums. Thus putting me and others like me into bankruptcy immediately. The company with 20 employees will pay $48,000 per year. They might survive.
The clear point is that the proposed healthcare legislation is worded so that small businesses with many employees will be crushed. That will be disastrous to our country and I ca-t imagine this is what is intended.
J, you are right. It sounds like we do agree. I was actually responding to the initial poster, whose logic just didnt hold up.
MaryAnnBusiness Plan MasterStart and Finance Your Business Now
ps -- I think more people agree with us than are really known. We aren't the ones shouting, so we aren't being heard as clearly.
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Pretty sad that a government is implementing practices that bankrupt the very bloodline it relies on. Good luck to all those american businesses with an overhead that is about to skyrocket compliments of Obama.
By the way, my practice has zero employees right now because we use all paperless systems. Kind of a sigh of relief. For businesses who are trying to stay afloat it may be the right direction.
Camarillo Chiropractor
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I have to agree with the monetary burden that this socialized medicine will put on small business. I am a small business myself and the costs will be a hurdle. The whole debate should not be just who will pay but should focus on the horrendous results that the US healthcare has with patients excluding emergency care. We rank at the bottom of the list, 37th out of 39th, in health and yet spend twice as much per capita than any other country. Correcting this issue is where the cost savings will add up.
Jim
Family Wellness
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I am trying to find out how a sole proprieter like yourself gets insurance for just him and his family members in CT. In the past, you could get it through SBA or Chamber of Commerce, but I can't find any information on whether they still provide this service.
The Affordable Care Act has special provisions for small businesses. There are tax credits for those who provide health insurance to their employees. Bonus tax credits will be available to those who exceed the 60% barrier. And if you buy the group coverage from the upcoming Exchange, you will land yourself a better deal as well. You should go through the Affordable Care Act carefully to have your way around them.
Moin Jafri
Health Exchange
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I found your post interesting, and your arguments very good, but just a few questions:
1. As an employer, isn't one currently also mandated to cover all of their employees on payroll, unless of course they are on 1099?
2. Isn't our President also talking about a reduction in the cost of health cover?
3. Aren't larger employers eligible for higher group discounts, because of the volume of employee?
Additionally larger employers who are achieving the same dollar amount in profitability, as a much smaller employer, should start rethinking their labor/employment strategies
If you do not rethink your direct costs, you are going to get into trouble with costs, whether or not the healthcare reform happens
Message Edited by ZanetaB on 08-18-2009 11:59 AM
There are two huge gaping holes in your logic.
First: Every company will be in the same boat, so you will still remain competitive in your market. You won't go out of business any sooner if you provide health insurance than if you don't provide it. In fact, you will likely be able to retain good employees longer, and in better health.
Second: We already pay for everyone's health insurance, but we do it on a critical Emergency Room basis. We wait until someone is really sick, then have them go the ER. Who do you think pays for all those ER visits? The ER fairy? Visits to doctors offices aren't cheap, but they are a whole lot cheaper than ER visits. Encouraging people to visit a real doctor in a real doctor's office will ultimately save us BILLIONS. Yes, BILLIONS.
MaryAnnBusiness Plan MasterStart and Finance Your Business Now
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