The ruling was that all employers with over 50 employees would either provide healthcare insurance or pay a $2,000 fine per employee if they don’t. That was to become effective in 2014 but has now been delayed until 2015.
The negative side of this ruling should be obvious to most of us. Employers with less than 50 employees cancelled any expansion plans they may have had which would have required hiring more people. Many businesses with over 50 employees cut all of their employees to 30 or fewer hours per week letting them off the hook for either the fines or providing the insurance. This worked fine for the business owners, but was devastating for the employees. Most of these now part-time employees are forced to find yet another part-time minimum wage job to keep their bills paid and food on the table.
Take a moment and think about yourself being in the shoes of an employer with 50 employees. He is faced with providing each and every employee health insurance at a yet to be determined cost. That is correct, he has received no information at all telling him what the actual cost of this insurance will be. It is rather hard to budget and plan for the next year when there are large and unknown expenses looming in the shadows. His other choice would be to not buy the insurance, but to pay the $2,000 per employee fine every year. That choice would cost him $100,000 every year until the law is changed. He is thinking that this new law just may force him out of business.
Then a genius Politician comes along with a solution that would save his business and his employees jobs. If he were to make all of his employees “part-time,” then he is exempt from buying the insurance or paying the fines.
Now one might think that the decision to delay enforcing this requirement or collecting fines was done to help boost the struggling economy, but nothing could be further from the truth.
The one-year delay decision was entirely based on Politics, and the government agencies not being prepared. Even some democrats and hard-core liberals own businesses and will be affected by this new law. This administration didn’t want to anger these people by having them feel the pain of either paying the huge fines, or paying for expensive healthcare prior to the mid-term elections. It was the very Politicians some of these business owners voted for that helped rush this bill through congress and put it into effect. Few if any of the Politicians actually read the bill; they just voted in favor of the bill that is now law.
In essence, they said, “Sorry Mr. Business person, but we have passed a new law and I am now required to shoot you in the foot.”
“But Mr. Politician, if you shoot me in the foot I may not be able to keep my business running and I will have to lay off all my employees and close the doors.
“Sorry Mr. Business person, but the law is the law, and this will be good for the country.”
“OK Mr. Politician, I guess I have no choice but to cut every expense I can, and not hire anymore people.”
“Well Mr. Business person, you could make them all part time employees and then the law will not apply to you.”
“But Mr. Politician, they can’t live on part time wages, what will they do?”
“Mr. Business person, that is not my problem. They will just have to get by on their own. This will make them eligible for food stamps, and you know we are handing those out like candy.”
Time passed, and things that should already be in place prior to 2014 have not been accomplished.
Your comments are welcomed and appreciated.
NOTICE TO BUSINESS OWNERS: WEDNESDAY 7/3/2013
This administration has decided to delay shooting you in the foot until 2015 so you have more time before you need to come up with the money to purchase health care for your employees or pay the fines.
“But Mr. Politician, I still have to worry about the pain you will cause when you shoot me in the foot in 2015?”
“Yes Mr. Business person, but the elections are coming up and I need your vote.” I was afraid that if I shoot you in the foot before the election you might be angry and vote for someone else.”
“But Mr. Politician, this one year extension is all about helping you, and really does nothing to help me, except buy me a little more time before you shoot me in the foot?”
“Remember Mr. Business person, this is good for the country and your personal pain is of no concern to those of us in Washington.”
NOTICE TO BUSINESS OWNERS: FRIDAY 7/5/2013 An end of day announcement by the Department of Health and Human Services was published in the Federal Register. No press agencies were notified, and most of the buildings were empty of Politicians due to the Holiday weekend.
They announced that now the Verification plans for taxpayer subsides was also being delayed until 2015. They are willing to just take the word of those filing tax returns claiming these subsidies with absolutely no verification of income. The Honor System at its finest. It is estimated that 25% of those who file for “Earned Income Credits” are not eligible, but receive the refund checks from the IRS every year. But what the heck, it is only money and they can always print more money if they need it.
They purposely do this sort of thing on Friday’s, and as late in the day as possible, so that little or no media attention is drawn to the matter over the weekend. By Monday, hopefully some new crisis has occurred somewhere in the world, and the media will never even bring up this subject.
Again, there was a dual purpose behind this one-year delay of making anyone feel the pain of ObamaCare. This administration wants the pain to not be felt until after the mid-term elections, and they didn’t have the necessary tools and people set up to do the verification work. They will make it sound like they are doing us a favor, when in fact they didn’t get their work done on time and are not prepared.
So once again, Millions of our hard earned dollars will be paid out without any proof the person claiming the subsidy is actually entitled to the money. I guess we should be used to that by now, but it still hurts.
I have to ask how anyone in their right mind could not see that saddling employers with unknown insurance costs or be forced to pay a fine just might have a negative impact on our economy is beyond me. This healthcare bill was shoved through without even reading what was in it, and lots of vote buying among the “good ole boys” in government. For example, promises were made to agree to vote on one guy’s new bridge in return for his Yea vote on ObamaCare.
Now even some of the ObamaCare bills staunchest supporters are running like rats and don’t want the pain that will come with this bill blamed on them; at least not until after the election that is. They just need that next four-year term in office to finish lining their pockets with gold before they leave. They know there will be a huge outrage when employers pay their first bills for ObamaCare coverage for their employees, or pay the large fines in lieu of providing insurance.
When I talk to people, or read comments on some of the blogs, there are still those who truly think ObamaCare is free medical care for everyone. Nothing that could be said will ever change their minds on what they believe. They also believe the greedy corporations and the wealthy just don’t want them to have this free care. Again, nothing can be said that will make them change their minds.
The actual result of this one-year delay on implementing these rules will only be to stall the economy for a longer period of time. Employers will not expand their businesses and hire more people. Many full time employees will find themselves working part time. And the same Politicians who caused this mess will get re-elected because of this temporary delay.
It will be interesting to see how far away from this fiasco the rats will run. Some will escape completely; others will at least have their fur singed by the fires that are sure to come with full implementation of ObamaCare.
CNN says no big deal...
I disagree with CNN. If employers are not paying their fines, and people are still getting medical care, take a wild guess at who will be paying the bill. If you guessed we taxpayers, you win the prize.
This company started splitting employees between two different franchise owners. They work at one store for 25 hours, and then work at the other store for 25 hours. They work 50 hours per week and the employers are exempt from providing healthcare insurance or paying the fines.
Since these two announcements were made, it is now being questioned if the President has the power to change what was voted on by Congress and written into law. It appears to be an attempt to “Cherry Pick” this failing program. The facts are that some employees dropped their medical coverage to save money, fully expecting to be provided insurance by their employer in 2014. This sudden change means they will not have any medical coverage until 2015.
The promised insurance exchanges are not in place and functioning as they should be by this time, many employees have been reduced to part-time status, the means to verify applicants requesting taxpayer subsides has not been established, and employers are still not hiring.
Does the Health Care industry need an overhaul? Of course it does. With more planning and preparation, ObamaCare could have been a step in the right direction. However, this plan was rushed through, voted on without reading the bill, and has turned out to be a nightmare rather than a dream.
All of this was because someone wanted to go down in history as fixing our badly broken healthcare system. I can only hope that history will truthfully report what a total disaster this has become.