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Small Businesses Fear Health Law's Reach

Posted at 1:15 p.m. on Jan. 17

The Wall Street Journal looks at the impact on hiring practices of the mandate in President Obama’s health care reform law that employers with at least 50 employees offer health insurance to their workers.

“Even though the rule doesn’t go into effect until early 2014, a business could be subject to the so-called employer mandate if, during 2013, it averages 50 or more full-time equivalent employees.”

“To avoid the health-care law’s penalties, many employers are considering hiring only part-time employees or deliberately curbing growth so that they have no need to hire… The best solution…is to hire independent contractors, who would be able to take on certain tasks without upping her headcount.”

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  • FreeStateLarry

    Hm ok. Like Ezra Klein correctly pointed out, the law will allow businesses that practice what it encourages to grow. So if they want to shoot themselves in the foot, let them. We’d be better off without businesses that would be so irresponsible anyway.

    • jericho

      I’m not sure what article you’re referring to, but either you’re mis-quoting it or it’s a retarded article.

      You might be confusing it with Klein’s comment on MARGINAL tax rates.

      Klein’s a bright guy, so I suspect you are confused.

      This is not a MARGINAL policy effect. If you hire 50 employees, you pay health care for ALL 50. if you hire 49, you pay health care for ZERO. Not like income taxes.

      Now, the math is going to be different for each business. But I could see a situation where it’s worse to hire between let’s say 50-75 employees, than to hire 49, only when you get to 75 do you start seeing positive returns.

      Are these low-growth businesses not worth having in exchange for expanded health insurance? Maybe, who knows?

      • FreeStateLarry

        His article to be fair was on Papa Johns CEO’s retarded reaction to the ACA. His point was that businesses who treat their employees well will be affected very little by ACA and maybe even benefit from it.

        Moreover, this discussion is one we could probably have for hours on end.

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