Friday, September 14, 2012

How will Obamacare impact small businesses?

Just how will Obamacare impact small businesses? We have heard all kinds of stories from both sides of the table. Republicans and Democrats all have their own take on Obamacare.

At the recent International Franchise Association convention held in Washington this week we got some ideas from the small business owners that will be directly impacted. That's where Atlanta Taco Bell and Kentucky Fried Chicken franchiser David Barr pulled out his powerpoint showing how funding Obamacare will cut his profits in half overnight.

With simple math the small business folks understood, he spelled out that their only choice is to slash employee hours so they aren't eligible for company-paid health care or stop offering insurance and pay the $2,000 per employee fine. Barr has 23 stores with 421 employees, 109 of whom are full-time. Of those, he provides 30 with health insurance.

Barr said he pays 81% of their Blue Cross Blue Shield policy, or $4,073 of $5,028 for individuals, more for families, for a total bill of $129,000 a year. Employees pay $995. Under Obamacare, however, he will have to provide health insurance for all 109 full-time workers, a cost of $444,000, or two and half times more than his current costs. That $315,000 increase is equal to just over half his annual profit, after expenses, or 1.5% of sales.

As a result, he said, "I'm not paying $444,000." Providing no insurance would result in a federal fine of $158,000, $29,000 more than he now spends but the lowest cost possible under the Obamacare law. So he now views that as his cap and he'll either cut worker hours or replace them with machines to get his costs down or dump them on the public health exchange and pay the fine.

"Every business has a way to eliminate jobs," he said, "but that's not good for them or me." But that's not all. His experience tells him that most low-wage workers he would have to cover under Obamacare won't take it because their $995 share is too high, meaning those the program was set up for won't see any benefit. And those who do will because they have major health issues, likely resulting in higher premiums to him.

This will be the norm throughout the United States. Every business owner will have to deal with the same issues. The result will not be pretty at all.

Check out the latest from the Investor Business Daily Obamacare List

36 comments:

Anonymous said...
This comment has been removed by a blog administrator.
Anonymous said...

Please let me know if you're looking for a article writer for your site. You have some really good articles and I think I would be a good asset. If you ever want to take some of the load off, I'd absolutely love to write some articles for your blog in exchange for a
link back to mine. Please send me an email if interested. Regards!
My site - cheap reborns

Anonymous said...

Have you ever considered creating an e-book or guest authoring on
other websites? I have a blog based on the same
ideas you discuss and would really like to have you share some stories/information.
I know my visitors would value your work. If you are even remotely interested, feel free
to shoot me an e-mail.
Also visit my page - Credit Repair Reviews

Anonymous said...

whoah this weblog is magnificent i really like studying
your articles. Keep up the good work! You understand, a lot of persons are looking round for this info,
you could aid them greatly.
my site: benefits of digestive enzymes

Anonymous said...

you are in point of fact a excellent webmaster. The site loading velocity
is amazing. It seems that you are doing any distinctive trick.
Furthermore, The contents are masterpiece. you've performed a excellent task on this topic!
Feel free to visit my web-site : symptoms of acid reflux

Anonymous said...

Amazing issues here. I'm very happy to see your post. Thanks a lot and I'm looking forward to contact
you. Will you please drop me a mail?
My webpage ; OnlyCruiser.com

Anonymous said...

Good day very cool website!! Guy .. Excellent .. Wonderful .

. I will bookmark your web site and take the feeds additionally?
I'm glad to search out so many useful info here within the publish, we want develop extra techniques in this regard, thanks for sharing. . . . . .
Here is my weblog : codes

Anonymous said...

Hi there, just became alert to your blog through Google,
and found that it's truly informative. I am going to watch out for brussels. I will appreciate if you continue this in future. Numerous people will be benefited from your writing. Cheers!
My site :: FinderHostel.com

Anonymous said...

Awesome article.
Here is my webpage ; Geeks on Steroids Janeth

Anonymous said...

Thanks for another informative web site. The place else may I get that type of information written in such a perfect means?

I have a undertaking that I'm just now running on, and I have been at the glance out for such info.
Look at my website Lexington Law

Anonymous said...

Thanks for finally talking about > "How will Obamacare impact small businesses?"
< Loved it!
Here is my homepage :: cheap wedding insurance

Anonymous said...

Hey there! This is my first comment here so I just wanted to give a quick shout out and say I truly enjoy reading your articles.

Can you recommend any other blogs/websites/forums that
go over the same topics? Thank you so much!

My web blog ... how To make money on the internet
My page - How to make fast money

Anonymous said...

I know this if off topic but I'm looking into starting my own blog and was curious what all is needed to get set up? I'm assuming having
a blog like yours would cost a pretty penny?
I'm not very internet savvy so I'm not 100% sure. Any recommendations or advice would be greatly appreciated. Kudos

Take a look at my blog post ... how to make money online
my web site - best ways to make money online

Anonymous said...

I think this is one of the most vital information for me.
And i am glad reading your article. But wanna remark on few general things, The
website style is wonderful, the articles is really great :
D. Good job, cheers

Feel free to visit my website ... buy penny stocks

Anonymous said...

Its like you read my mind! You seem to know so
much about this, like you wrote the book in it or something.
I think that you can do with some pics to drive the message home a little bit, but other
than that, this is wonderful blog. A great read.
I'll definitely be back.

my webpage: how to make real money from home
My site > quick ways to Make extra money

Anonymous said...

Howdy just wanted to give you a quick heads up and let you know a few of the pictures aren't loading properly. I'm not
sure why but I think its a linking issue. I've tried it in two different web browsers and both show the same results.

Review my web-site :: Work Online From Home And Get Paid

Anonymous said...

Hi! Quick question that's completely off topic. Do you know how to make your site mobile friendly? My web site looks weird when browsing from my iphone. I'm trying to find a template or plugin that might be able
to correct this problem. If you have any suggestions, please share.
Cheers!

Also visit my homepage :: options trading for dummies

Anonymous said...

I quite like looking through a post that can make men and
women think. Also, thank you for allowing for me to comment!


my web site: day trading taxesforex market

Anonymous said...

Amazing issues here. I'm very glad to see your post. Thanks a lot and I am taking a look forward to touch you. Will you please drop me a mail?

Also visit my blog post :: forex account

Anonymous said...

Hello, I read your blogs regularly. Your humoristic style is awesome,
keep doing what you're doing!

Here is my page: how To make Money with money

Anonymous said...

I'm really enjoying the design and layout of your website. It's a very easy on the eyes which makes it much more pleasant for me
to come here and visit more often. Did you hire out a designer to create your theme?
Exceptional work!

Feel free to surf to my website :: how to make money on the internet

Anonymous said...

Hey I am so delighted I found your blog, I really found you by
mistake, while I was browsing on Google for something else, Regardless I am here now and
would just like to say thanks a lot for a incredible
post and a all round enjoyable blog (I also love the theme/design),
I don't have time to go through it all at the minute but I have saved it and also included your RSS feeds, so when I have time I will be back to read much more, Please do keep up the excellent work.

Here is my web blog - day trading rulesforex rate pakistan
my webpage :: day trading strategiesforex managed account

Anonymous said...

My brother suggested I might like this website.
He was entirely right. This post actually made my day.
You can not imagine simply how much time I had spent for
this information! Thanks!

Here is my blog :: how to make money from home legitimately

Anonymous said...

Hey! I understand this is kind of off-topic
however I needed to ask. Does operating a well-established blog like yours take a large amount of work?
I am brand new to operating a blog but I do write in my diary every day.
I'd like to start a blog so I can easily share my personal experience and thoughts online. Please let me know if you have any recommendations or tips for brand new aspiring bloggers. Thankyou!

my site :: how to make some money online

Anonymous said...

Howdy! This blog post couldn't be written any better! Reading through this article reminds me of my previous roommate! He continually kept preaching about this. I'll forward this
article to him. Fairly certain he will have a very good read.
Many thanks for sharing!

my homepage: Trade penny stocks

Anonymous said...

You are so cool! I don't think I've read through a single thing like this before.
So wonderful to find somebody with genuine thoughts on this subject matter.

Seriously.. thank you for starting this up. This web site is something that's needed on the internet, someone with some originality!

My site - i need money right now for free

Anonymous said...

Highly energetic post, I loved that a lot. Will there
be a part 2?

Feel free to visit my homepage ... work online from home

Anonymous said...

You really make it seem so easy with your presentation but I find this matter to be actually something that I think I would never understand.

It seems too complex and very broad for me. I'm looking forward for your next post, I will try to get the hang of it!

Take a look at my website; online money earn

Anonymous said...

Its like you learn my thoughts! You seem to grasp a lot about this, such as you wrote the book in it or something.
I believe that you could do with some % to force the message house a bit, however instead of that, this is fantastic blog. A fantastic read. I will certainly be back.

Also visit my blog post how to get free money now

Anonymous said...

I was recommended this blog by my cousin. I'm not sure whether this post is written by him as no one else know such detailed about my difficulty. You are incredible! Thanks!

Check out my web page: money orders online

Anonymous said...

Very good article! We will be linking to this great
post on our website. Keep up the good writing.

Also visit my website :: make money playing video games

Anonymous said...

Great blog! Do you have any tips for aspiring writers?

I'm hoping to start my own site soon but I'm a little lost
on everything. Would you suggest starting with a free platform like Wordpress or go for a paid option?
There are so many options out there that I'm completely confused .. Any recommendations? Thanks a lot!

Feel free to visit my homepage; iklan baris

Anonymous said...

The last and final type are White South Sea Pearls, which source from regions of Australia and are considered to be the priciest and some of the most valuable
in the world. The gift of a pink pearl can leave a wonderful impression of delight and happiness in someone.
With the increasing costs of outside activities, many adults are turning to
crafts for something to occupy their minds and otherwise idle hands.


my web site - derbentcity.ru

Anonymous said...

Sure, timepieces are getting to be stylish fashion symbols, but their essence is usually to perform.
A  Their unconventional appearance and styling is reliant upon the mystic of numbers.
This is often a tough question since you need to determine what type of individual you happen to be before buying the right timepiece to
fit your looks and style.

My homepage :: http://officialsnet.com/blog/index.php/claytonwo

Anonymous said...

This is the reason why present generation put lots of care in selecting the dining table and its accessories.
Add collectible swords for your fireplace to give a sense of honor and courage
for a living area. Square dinnerware is circular inside center,
thus which makes it straightforward for you to serve up dinner to your guests and family.


Also visit my homepage :: flatware

finestglasses said...

Find cool kids glasses discounted costs. Save 70% about RX eyeglasses and structures for children together with following day S&H.