December 11, 2013
Chief financial officers say they expect to reduce hiring and also move more jobs to part-time status as a result of the Affordable Care Act, according to a new survey from Duke University and CFO Magazine.
Many companies also are considering a reduction in health care benefits for employees.
“I doubt the advocates of this legislation would have foretold the negative impact on employment,” said Campbell Harvey, a professor of finance at Duke\’s Fuqua School of Business. “The impact on the real economy is startling. Nearly one-third of firms may either terminate employees or hire fewer people in the future as a direct result of ACA.”
via Duke survey: Firms to hire less, shift more jobs to part time due to health care law :: WRAL.com.
December 10, 2013
In its definition of a business entity, the law references a section of the Internal Revenue Code known as the Common Control Clause. Under that clause, all employees of corporations, partnerships or sole proprietorships with common owners are lumped together, and in some cases, firms that share common equity investors can be considered a single employer, too. Ultimately, if the sum exceeds 50 workers, each firm is subject to the new coverage mandate.
Often overshadowed by rules concerning the number of hours that constitute full-time employment or the number of workers that define a small business, the aggregation rules pose an addition compliance headache for a large number of small business owners. In fact, roughly four out of 10 small firms with at least 20 employees are run by employers who own at least 10 percent of at least one other company, according to research by the National Federation of Independent Business.
via Health care law’s aggregation rules pose a compliance nightmare for small businesses – The Washington Post.
December 9, 2013
Volunteer fire departments all across the U.S. could find themselves out of money and unable to operate unless Congress or the Obama Administration exempts them from the Affordable Care Act.
\’I thought the kinks were worked out of Obamacare at the first of the month, Central Florida volunteer firefighter Carl Fabrizi told Sunshine State News.
\’Man, oh, man, this could potentially destroy some real good companies in Florida.\’
The U.S. Department of Labor takes the term \’volunteer\’ literally, but the IRS says volunteer firefighters are technically employees if they\’re on the job more than 30 hours per week, making them subject to Obamacare\’s employee-mandate rules.
via Obamacare mandates are set to shutter THOUSANDS of volunteer fire departments | Mail Online.
December 5, 2013
She says it is likely that many entrepreneurs won\’t realize they are subject to the law\’s aggregation rules—which apply mainly to entrepreneurs who own assets or have financial stakes in multiple businesses—until it is too late.
Here’s an example: Ms. Walker says if a mother buys a stake in her son’s dog-grooming business and then she invests in her neighbor’s hair salon, the two entities could be considered one employer under the law, depending on the amount she invested in each. It wouldn\’t matter if the mother isn\’t involved in running either entity, or even if the two entrepreneurs have nothing else in common but her investment, she adds.
“The calculations are complex and many small businesses will be caught unaware,\” says Todd McCracken, president and CEO of the National Small Business Association. Other business groups, including the U.S. Chamber of Commerce, International Franchise Association and the National Federation of Independent Business, have also expressed concern.
via Rule in Health Law Counts Separate Firms as One – WSJ.com.
November 22, 2013
Jonathan Gruber, an Obamacare architect, claims that 80% of the population – mostly those with employer-sponsored health insurance coverage—will be “unaffected by Obamacare.” AEI economist Stan Veuger disagrees: “The only people who are certainly completely unaffected are those whose plans will be ‘grandfathered’ into Obamacare. By the administration’s own estimates, only half of those with employer plans fall into this category even now. Many non-grandfathered plans, especially in the small-group market, will be affected significantly”
via Just how many Americans will really have their health insurance affected by Obamacare? | AEIdeas.
November 6, 2013
Small businesses, with fewer than 50 employees, are not forced to provide coverage under Obamacare.But when they do, policies sold in the small group market are subject to the same regulations now forcing the termination of millions of health plans sold directly to consumers.But late last year, businesses that employed fewer than 50 employees began exploiting a loophole they found in the Obamacare text. If the businesses renewed their policies early, before the end of 2013, then those plans would not be subject to Obamacare’s costly mandates for a full year, in many cases until December 31, 2014.But that clock is already ticking. Starting in October 2014, many employees of small businesses will start getting the same notices that are now being mailed to individuals, informing that their existing health plans are also being canceled.
via Thousands of small businesses will also start losing their current health policies under Obamacare. Heres why – Health – AEI.
October 30, 2013
During President Obama’s Boston visit to talk about the ACA and the Massachusetts experiment, it is important to remember some context. Here are a few pictures that help to illustrate the successes and failures of Mass reform.
However, caution should be used when expecting the same results under the two laws, since the laws are different, and Massachusetts is not the same as Arizona, or Texas, or Alabama, or Ohio, or etc…. For example, read five reasons why employer behavior will not be the same under the ACA as it was under RomneyCare, Part 1 and Part 2. But before we begin, let’s pause to recognize that the ACA will impact Massachusetts in some significant ways.
via In Pictures: 15 Facts Pres. Obama Needs To Know About Mass.’s Healthcare Reform | Pioneer Institute.
October 28, 2013
Monday, November 04, 2013 | 8:30 a.m. – 9:30 a.m.
AEI, Twelfth Floor
1150 Seventeenth Street, NW
Washington, DC 20036
About This Event
This is the first event in an AEI breakfast series discussing the implications of developments in Obamacare implementation.
One month into the Affordable Care Act’s rollout, where do we stand? From the website malfunctions to the ongoing federal court cases to the delay in the individual penalty, many aspects of the law have yet to be settled.
How are these developments affecting Obamacare’s long-term viability, and what do they mean for Americans now attempting to access insurance through the exchanges? What implications do they have for stakeholders — such as insurance companies, businesses, and providers — who are affected by the law? And what problems have yet to appear?
Join AEI scholars for the first event in a discussion series of the promises, problems, and implications of the Affordable Care Act rollout.
If you are unable to attend, we welcome you to watch the event live on this page. Full video will be posted within 24 hours.
via Obamacare, month one: Monitoring the vital signs – Health – AEI.
October 23, 2013
A closer look at the industry hours worked reveals two distinct job markets. Private industries where pay for nonsupervisors averages up to about $14.50 an hour employ 29 million workers (roughly the bottom quartile). In these industries, the workweek is back near the 27.4-hour record low seen at the depth of the recession in 2009.
Meanwhile, the average workweek for the 85 million jobs that comprise the rest of the private sector is 36.9 hours — an hour longer than it was in mid-2009 and slightly higher even than it was before the recession.
via ObamaCare Still Having Big Impact On Work Hours At Low End, Data Show – Investors.com.
October 23, 2013
But eventually, software can be fixed. Obamacare’s epic policy flaws can’t.
The problems increasingly are going to be up close and personal, as people see for themselves the impact it has on their lives and pocketbooks. The top ten debacles to come:
via Top Ten Obamacare Disasters to Come | National Review Online.