“A small business health insurer broker testified today that Obamacare’s Medical Loss Ratio (MLR) regulations has cut his revenues, forced many of his competitors out of business, and may end the small business insurance broker industry entirely… Obamacare is regulating these small businesses out of existence by defining the commission they earn in as administrative overhead the purpose of calculating an insurance companies MLR. Obamacare mandates that insurers in the individual and small group market must spend 80% of their premium dollars on medical costs, not overhead.”
“The healthcare law’s program for early retirees is an example of the law’s broader flaws, House Republicans charged Wednesday. Republicans on the Energy and Commerce Committee criticized the way the Obama administration handled the Early Retiree Reinsurance Program (EERP). The Health and Human Services Department announced last week that nearly all of the EERP’s $5 billion budget had been spent and the program would shut down at the end of the year.”
“In an economic climate of increasing uncertainties, Puzder says, one certainty is that many businesses now marginally profitable will disappear when Obamacare causes that margin to disappear. A second certainty is that ’employers everywhere will be looking to reduce labor content in their business models as Obamacare makes employees unambiguously more expensive.'”
“Medical device maker Stryker Corp said it will cut 5 percent, or about 1000 jobs to largely offset costs related to the scheduled implementation of the new Medical Device Excise Tax in 2013.”
“The 2010 healthcare law contains a tax on the health insurance policies that most small businesses purchase… Estimates predict the tax will raise the cost of employer-sponsored insurance by 2% – 3%, imposing a cumulative cost of nearly $5,000 per family by 2020. The NFIB Research Foundation’s BSIM model suggests that such price increases will reduce private sector employment by 125,000 to 249,000 jobs in 2021, with 59 percent of those losses falling on small business.”
“President Obama’s health care law requires employers to offer health benefits to full-time employees. This employer mandate will price many unskilled workers out of full-time employment. After paying the new health premiums, the minimum wage, payroll taxes, and unemployment insurance taxes, hiring a full-time worker will cost employers at least $10.03 per hour. Full-time workers with family health plans will cost $13.75 per hour. Employers who hire workers with productivity below these rates will lose money. Businesses employing less skilled workers will probably respond by dumping their employees onto the federally subsidized health care exchanges and replacing full-time positions with part-time jobs.”
“Staffing firms urged Congress Thursday to repeal the healthcare law’s requirement that employers provide insurance for their workers — even as they continue working with federal regulators to tweak the law.”
“The uninsured truly in need of help are those with household incomes below $25,000. They represent roughly a third of the uninsured, or 16.1 million.
Now, 16 million uninsured is nothing to sneeze at. But they represent only 5% of the American population. Finding coverage for them doesn’t require remaking one-sixth of the U.S. economy, as ObamaCare does. Many of these 16 million people are already eligible for public insurance, chiefly Medicaid and the State Children’s Health Insurance Program. They just haven’t signed up.”
“One provision of the new healthcare law is a 2.3% excise tax on the medical device industry which will take effect in 2013. This study estimates the potential effect of the device tax on employment in the medical device industry. The study finds that the tax could reduce employment in the industry by cutting back on the demand for medical devices and by encouraging American firms to shift production overseas.”
“The best thing that Congress can do to unleash jobs creation is to repeal the Patient Protection and Affordable Care Act.
The law is discouraging businesses from hiring. According to a recent U.S. Chamber of Commerce survey, 39 percent of small business owners say the law is either their greatest or second-greatest obstacle to new hiring.
The president of the Federal Reserve Bank of Atlanta, Dennis Lockhart, says that ‘prominent’ among the obstacles to hiring is the ‘lack of clarity about the cost implications’ of the legislation.”