ObamaCare Is A Lump Of Coal For Employers

- December 15, 2013

On The 7th Day Of ObamaCare, Democrats Gave To Me … Businesses-A-Closing


Obama Promised That ObamaCare Would Provide "Cost-Savings" To Employers That Could Result In Raises For Employees. OBAMA: "Americans who get their insurance through the workplace, cost-savings could be as much as $3,000 less per employer than if we do nothing. Now, think about that. That's $3,000 your employer doesn't have to pay, which means maybe she can afford to give you a raise." (Barack Obama, Remarks At George Mason University, Fairfax, VA, 3/19/10)


According To A July Chamber Of Commerce Poll, ObamaCare Now "Surpasses Economic Uncertainty As The Top Worry For Small Business Owners." "Small business owners' concern about the economy remained steady this quarter; however, their concern about the 2010 health care bill rose significantly in the past quarter and for the third quarter in a row (from 42% in January to 49% in June). Since June 2011, anxiety about the requirements of the law has increased by 10-points since and now surpasses economic uncertainty as the top worry for small business owners." ( Harris Interactive/U.S. Chamber Of Commerce , 1,304 Small Business Executives, MoE 2.5 %, 6/21/13-7/8/13)

A Separate IFA Poll Shows That "Sixty-Four (64) Percent Of Business Decision-Makers In Franchise-Owned Businesses And 53 Percent Of Non-Franchisee-Owned Businesses Believe The ACA Will Have A Negative Impact On Their Businesses." ( IFA/U.S. Chamber Of Commerce/Public Opinion Strategies , 414 Franchise-Owned And Non-Franchised Owned Businesses With 40 To 500 Employees, 11/13/13)

"Twenty-Nine (29) Percent Of Franchise And 41 Percent Of Non-Franchise Businesses Are Already Seeing Health Care Costs Increase Due To The Law." ( IFA/U.S. Chamber Of Commerce/Public Opinion Strategies , 414 Franchise-Owned And Non-Franchised Owned Businesses With 40 To 500 Employees, 11/13/13)

The IFA Poll Shows That "The Employer Mandate Will Almost Double The Percentage Of Franchise-Owned Businesses And More Than Triple The Percentage Of Non-Franchise Businesses That Will Not Offer Health Care." "Twenty-eight (28) percent of franchise and non-franchise businesses surveyed report that the employer mandate will mean they will drop coverage for their employees. In effect, among this segment of businesses, the employer mandate will almost double the percentage of franchise-owned businesses and more than triple the percentage of non-franchise businesses that will not offer health care." ( IFA/U.S. Chamber Of Commerce/Public Opinion Strategies , 414 Franchise-Owned And Non-Franchised Owned Businesses With 40 To 500 Employees, 11/13/13)


Wellmark Blue Cross/Blue Shield Closed Its Sioux City Office, Eliminating 106 Local Jobs Due To ObamaCare. "Citing concerns about the new federal health insurance law, Wellmark Blue Cross/Blue Shield said Wednesday it will shutter its First Administrators office in Sioux City, eliminating 106 jobs." (Dave Dreeszen, "Sioux City Insurance Office To Close; 106 Local Jobs Lost," Sioux City Journal , 7/10/13)

  • ObamaCare's "Ever-Increasing Number And Complexity Of Federal Regulations, Mandates And The Rising Costs Associated With These Changes" Were To Blame. "Wellmark, Iowa's largest health insurer, attributed the decision to the 'ever-increasing number and complexity of federal regulations, mandates and the rising costs associated with these changes.' Major provisions of the Affordable Care Act, which revamps the nation's health care system, take effect next year." (Dave Dreeszen, "Sioux City Insurance Office To Close; 106 Local Jobs Lost," Sioux City Journal , 7/10/13)

Florida Coffee Shop Kool Beanz Café Owner Says ObamaCare Could Put His Shop Out Of Business. "'Kool Beanz Café' owner Keith Baxter has been in business for 18 years. He says if he had to provide health insurance to his employees as the act requires for some businesses he couldn't make it. 'As much as I would like to provide them with that benefit, it would be too cost prohibitive for me to do it,' said Baxter. 'No I wouldn't survive,' he said." (Andy Alcock, "Florida Hospitality Group Applauds ObamaCare Delay," WCTV, 7/10/13)

ObamaCare Mandates Forced Local Texas Entrepreneur To Sell Two Of His Stores "Because It Would Cost Him 30-Thousand Dollars More Out Of His Payroll." KETK's TERESA SARDINA: "Bob Westbrook franchise owner tells us, the Affordable Health Care Act is the reason why he sold some of his stores because it would cost him $30 thousand dollars more out of his payroll." WESTBROOK: "We knew we had a decision to make and that decision came very swiftly and quickly, when we sold two of our Cici's Pizza's here in Tyler and we retained the one in Longview but that got us under the 50 employees." (NBC's KETK-TX, 7/15/13)

Indiana's Iconic Bonnie Doon Ice Cream Plant Closed Due In Part To The Anticipated Costs Of ObamaCare. "An iconic Michiana company is closing. Tuesday, FOX28 talked with owners of the Bonnie Doon plant and downtown Mishawaka location. They tell us there are many reasons for the shutdown such as the declining economy and the rise in production costs. But the number one factor? The anticipated cost of the Affordable Care Act." ("Bonnie Doon Ice Cream Blames Obamacare For Plant Shutdown," Fox 28, 10/14/13)

  • The Company's CFO "Confirmed The Anticipation Of The Affordable Care Act Played A Large Part In The Shut Down." "FOX28 talked with the CFO who confirmed the anticipation of the Affordable Care Act played a large part in the shut down, something Kyle Hannon, Elkhart Chamber of Commerce President says many small businesses are wrestling with." ("Bonnie Doon Ice Cream Blames Obamacare For Plant Shutdown," Fox 28, 10/14/13)

Small Business Owners In West Virginia Who Want To Expand And Hire More Full Time Employees Cannot Due To ObamaCare's Taxes. "Mick Bates, owner of Bodyworks in Beckley, emphasized the higher insurance costs simply cannot be passed on to customers. Bates is in the process of opening shop in a new location and said he wants to add more employees. 'I want to provide jobs and I want to provide jobs with benefits and insurance,' he told fellow business people. 'But I can't afford to do it. So, I'm hiring part-time people, when I'd like them to be full-time, and that's the reality. It's (HIT) unsustainable. There has to be another way.'" (Mannix Porterfield, "State's Small Businesses, Threatened By HIT From Obamacare, Taking Action," Register-Herald, 6/27/13)

A Kentucky Restaurant Owner Had To Cut Staff To Get Below ObamaCare's 50 Employee Threshold. "He said he already has reduced his staff from 54 to 47 and is closed on Mondays. He said that his hard-working grandparents raised 11 children without insurance." (Jack Brammer, "Barr, Guthrie, Yarmuth Get An Earful About Health Care Law At Lexington Hearing," Lexington Herald Leader, 8/27/13)

A Lafayette, Louisiana Business Was Forced To Lay Off 41 Employees Due To Changes Under ObamaCare "Effective today, 41 employees at the Schumacher Group in Lafayette, have lost their jobs. According to a company letter, the Patient Financial Management Services division is being cut because of changes to health care law from ObamaCare. A Schumacher Group spokesperson says the department can't handle an increase in patient needs." (KATC, 5/1/13)

Louisiana Restaurant Owner Frank Dedman: "I Had To Let A Couple Of My Full-Timers Go." "Frank Dedman, the owner of Frank's Restaurant, told News 2 he made cuts to his staff to be in compliance with the new rules and regulations. 'We've had people here for quite a few years, majority of them were part-timers," said Dedman. "I had to let a couple of my full-timers go.'" (Brittany Weiss, "Restaurant Cuts Staff, Blames Health Reform," WBRZ, 6/15/13)

A New York Small Businessman "Says He Has No Plans To Add Workers" Because Of ObamaCare. "Ernie Canadeo, president of EGC Group, a Long Island, N.Y., advertising and marketing firm with 46 employees, says he has no plans to add workers. …if sales growth is moderate, he likely would try to stay below 50, knowing the insurance requirement will kick in in 2015." ("Businesses May Hire More After Delay Of Health Law," USA Today, 7/8/13)

ObamaCare May Force Hollywood Productions To Be Shot In Foreign Countries, Costing American Jobs. "One of the unintended consequences, say some industry insiders, is that it could lead to productions running to foreign countries, given that ACA doesn't apply to U.S. citizens working abroad." (Paul Bond, "ObamaCare Hit Hollywood: Studios Brace For The Affordable Care Act," Hollywood Reporter, 6/26/13)

Virginia Businessman Bill Saxman Said That He Has Held Off On Expanding His Business "Because He Doesn't Know What His Costs Will Be" After ObamaCare Is Enacted. "Saxman also told Cuccinelli Friday that he's running out of space at his Staunton facility and he would like to expand, but he can't afford to right now, because he doesn't know what his costs will be next year, when the new healthcare system takes effect." (Editorial, "Businesses Need Stability," Waynesboro News Virginian , 7/15/13)

Ohio Restaurant Owner Shane Beukre Is Being Forced To Cut Staff Or Employees. "We talked to the owner of the restaurant Shane Beukre. He said any business with 50 or more employees will have to offer insurance to workers with 30 or more hours a week. If he does not do that, he gets fined $2,000 per employee. Beukre told us he's cutting some people down to under 30 hours to help with costs to his business and the workers." (Holly Roney, "ObamaCare: Is It Worth If For Local Workers," Toledo News Now, 6/27/13)

Subway Franchisee: "To Tell Somebody That You've Got To Decrease Their Hours Because Of A Law Passed In Washington Is Very Frustrating To Me." "'To tell somebody that you've got to decrease their hours because of a law passed in Washington is very frustrating to me,' said Loren Goodridge, who owns 21 Subway franchises, including a restaurant in Kennebunk. 'I know the impact I'm having on some of my employees.'" (Lisa Myers and Carroll Ann Mears, "Businesses Claim ObamaCare Has Forced Them To Cut Employee Hours," NBC News, 8/13/13)

A Family-Owned Trucking Business Says That High Health Care Costs Led It To Reduce Insurance Benefits - As A Result Of ObamaCare, The Business Faces A $100,000 Tax Bill. REPORTER: "Clyde Kerns is part of the reason that some people have fought against what opponents call ObamaCare. He wrote several letters telling McHenry the act threatens his family owned trucking company, based in Grover." KERNS: "If I'm not blessed by the grace of God, then we'll not gonna continue to exist." REPORTER: "Kerns said he decided long ago to cut insurance benefits for his 81 workers because the rates skyrocketed and it cost the company too much. He would be penalized under the new plan." KERNS: "The tax will be over a hundred thousand dollars." REPORTER: "Kerns said that he sympathizes for the people who believe they need insurance. But he said that he should have the right to offer his employees more money instead of providing coverage." (WSOC, 8/13/13)

ObamaCare Will Cost Tyson Foods, A Major Arkansas Employer, $10 Million Next Year. "And while polls show the race tight, some surveys also say that when voters learn Pryor was an Obamacare supporter, they are less inclined to vote for him. This was the same dynamic that doomed Lincoln in 2010, and as the law is being implemented, businesses in Arkansas are now complaining about the rising health care costs, including $10 million of additional costs Arkansas-based food giant Tyson will have to incur next year because of the new law. (Manu Raju, "Lone Arkansas Democrat Mark Pryor Hangs On," Politico, 8/19/13)


Medical Device Manufacturers Are Now Subject To A 2.3 Percent Sales Tax That Will Lead To A Loss Of Jobs And Higher Costs For Consumers. "A 2.3 percent sales tax on medical devices used by hospitals and doctors. Industry is trying to delay or repeal the tax, saying it will lead to a loss of jobs. Several economists say manufacturers should be able to pass on most of the cost." (Ricardo Alonso-Zaldivar, "Health Care Tax Hikes For 2013 May Be Just A Start," The Associated Press, 12/25/12)

The Tax Is Projected To Raise $29 Billion And Will Affect Manufacturers "From Thermometers To MRI Machines." "On Wednesday, an Internal Revenue Service final rule detailed plans to levy the tax. It was originally projected to raise up to $20 billion in revenues over 10 years, but the Joint Committee on Taxation later estimated it would be around $29 billion. The 58-page device rule lays out a tax structure for an industry that manufactures everything from thermometers to MRI machines." (Jason Millman, "Medical Device Tax Set But Industry Still Fighting," Politico, 12/6/12)

The Medical Device Tax Could Jeopardize About 43,000 Jobs Nationwide. "Lobbyists for medical device makers say implementation of the tax could jeopardize about 43,000 jobs nationwide in a $64.7 billion industry. They say companies have shed about 6,000 jobs in the past year, some in anticipation of the tax, while others might scuttle expansion plans or cut back on research that can lead to medical breakthroughs." (Bob Salsberg, "Medical Device Makers: Jan. 1 Tax Could Cost Jobs," The Associated Press , 12/28/12)

Massachusetts Medical Device Companies Said Tax "Could Stifle Innovation, Drive Jobs Overseas, And Force Them To Raise Prices." "On the same day, Patrick hosted more than a dozen representatives from the Massachusetts medical device industry at the State House. They told him the tax could stifle innovation, drive jobs overseas, and force them to raise prices. Richard A. Packer, chief executive of defibrillator maker Zoll Medical Corp., based in Chelmsford, has met with Brown and Patrick to discuss the issue. 'I think the medical device bill is ill-conceived, and is not a good part of the legislation,' he said. 'I'm in favor of repealing it in total, or going in and seeing how it can be adjusted.'" (D.C. Denison, "Repeal Of Medical Devices Tax Unlikely," The Boston Globe , 4/3/10)

ObamaCare Will Increase One Medical Device Manufacturers Tax Bill By $7.5 Million. "Richard Packer, chief executive officer of Zoll Medical Corp.-which makes cutting-edge AEDs, is one of those. He says a 2.3 percent tax on medical devices in the new health care law will increase his company's tax bill by $7.5 million." (Grace-Marie Turner, "New Taxes Could Undermine Medical Innovation," The Heartland Institute, 11/5/10)

  • Which Could Wipe Out Nearly 80 Percent Of The Company's Profits. "Like many companies on the forefront of medical innovation, Zoll Medical is not a corporate behemoth. It turned a profit of $9.5 million last year. In other words, this new tax could eliminate nearly 80 percent of its profits, leaving the company almost no money to invest in research and development." (Grace-Marie Turner, "New Taxes Could Undermine Medical Innovation," The Heartland Institute, 11/5/10)

Stryker Corp., A Medical Device Manufacturer Announced That It Would Cut Its Work Force By 5 Percent Due To ObamaCare's Medical Device Tax. "At least three firms have already announced layoffs in anticipation of the tax, including Michigan-based Stryker Corp, a maker of hip and knee replacements that said it will cut its work force by 5 percent, losing 1,000 jobs." (N.C. Aizenman, "Medical Device Tax Repeal Bill Gains Some Ground," The Washington Post , 5/30/12)

Welch Allyn, A Medical Device Manufacturer, Announced Plans To Lay Off 275 Workers Mainly Due To ObamaCare. "Medical instruments manufacturer Welch Allyn has decided to trim jobs in Central New York as part of a three year plan to restructure its operations. The company announced Monday plans to eliminate about 275 jobs - 10 percent of its global workforce -- to meet the challenges of a rapidly changing healthcare environment. Welch Allyn President and CEO Steve Meyer said in an interview that approximately 45 jobs will be eliminated from the Skaneateles Falls plant that is the company's home. 'A representative with Welch Allyn says the company will establish three distinct New Product Development and Technology Centers -- one of those centers will be in Skaneateles Falls. Two other centers will be located in Beaverton, Oregon and Singapore. The Oregon plant will send its manufacturing work to the Skaneateles Falls facility.' Meyer said that a stagnant economy has depressed sales of its high-tech medical diagnostic devices. However, Meyer said the main reason for the cutbacks is to cope with a little-known aspect of the Affordable Healthcare Act, known also as Obamacare. The law imposes a 2.3 percent tax on the raw revenue - before expenses and deductions - of medical device manufacturers. Welch Allyn is a privately held company, so Meyer declined to provides firm numbers on the company's sales. However, he said the tax will cost the company millions of dollars. He called the tax onerous and regressive." ("Welch Allyn To Eliminate Jobs At Skaneateles Falls Plant," News Channel 9 ABC, 9/11/12)

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