“Abbott Laboratories, maker of the rheumatoid arthritis drug Humira, said it will cut about 1,900 jobs as part of a restructuring of its pharmaceutical business. The cuts, amounting to 2 percent of the workforce, will help the Abbott Park, Illinois-based company cope with the U.S. health-care law passed last year, Abbott said in a statement today.”
“Two of the central promises of President Barack Obama’s health care overhaul law are unlikely to be fulfilled, Medicare’s independent economic expert told Congress on Wednesday.
The landmark legislation probably won’t hold costs down, and it won’t let everybody keep their current health insurance if they like it, Chief Actuary Richard Foster told the House Budget Committee.”
“The Patient Protection and Affordable Care Act (PPACA) imposes numerous tax hikes that transfer more than $500 billion over 10 years—and more in the future—from hardworking American families and businesses to Congress for spending on new entitlements and subsidies. In addition, higher tax rates on working and investing will discourage economic growth both now and in the future, further lowering the standard of living.”
“One of the central goals of the Patient Protection and Affordable Care Act (PPACA) was to increase the number of individuals with health insurance coverage. To encourage employers to offer coverage, the new law creates a tax penalty on firms with more than 50 workers that fail to provide “adequate” coverage for their employees. The result is government intrusion into voluntary arrangements made between employer and employee. The cost of the tax penalty will ultimately be borne by workers (lower wages and fewer jobs), shareholders (lower profits), and consumers (higher prices).”
“Ah, I know what you’re thinking. How can a law that raises the cost of labor by up to $6.00-an-hour for every worker in the country and has significant taxes on capital as well possibly be a job creator? (See my debate yesterday with the editors of USA Today over the magnitude of expected job losses these provisions will generate.) The answer: Cutler’s study ignores those things. Ignores them? Yes, ignores them.”
Watch a video of a small businessman discuss how ObamaCare will hurt his family and his business by taking away control of his health decisions.
“But that aside, Obamacare’s fiscal failure comes down to something a lot more basic: Government agencies nearly always overestimate the revenue generated from tax increases, and nearly always underestimate the new spending caused by new entitlements. Americans are a lot smarter than they look from inside the Beltway, and they modify their behavior to avoid new taxes and obtain new largesse. Federal bureaucrats may be good with calculators, but they’re weak on human nature.”
“Physician hospital organizations are firing back at President Obama’s health care law in the press and the courts, seeking a repeal of what they argue are “exclusionary and unconstitutional” restrictions. Section 6001 of the health care law effectively bans new physician-owned hospitals (POHs) from starting up, and it keeps existing ones from expanding. It has already halted the development of 24 new physician-owned hospitals and forced an additional 47 to struggle to meet the deadline to complete construction, according to the Physician Hospitals of America (PHA).”
“While making the case for his health care reform package, President Barack Obama argued that his proposal would make life easier for small-business owners. Unfortunately, now that it is law, Obamacare threatens to undermine a group of small-business owners that, perhaps, is more important than any other to his reform effort – doctors in private practice.”
Health care regulations create new costs to employers when hiring additional staff. ObamaCare’s new rules create strong disincentives for firms to hire low-wage workers or expand their businesses. “With higher-skill jobs, employers can offer the required benefits and pay for them by cutting the wage. But low-wage jobs in the restaurant and retail sectors leave little room for cuts in wages.”