Texas Political Lobbyists News: Obamacare Will Increase Unemployment
The following is a digest of an Op-Ed piece from the New York Post. The Texas Lobby Group is posting this summary as a public service to increase public discourse on the subject of health care in America. This digest is posted for other state lobbyists, politicians and politically active persons, government officials and consultants, and all interested parties.
Companies all over America are furious about Obamacare’s government mandated healthcare laws. Many restaurants are attempting to resist paying for their employee’s healthcare by cutting hours and/or increasing their prices. Besides restaurants, “Boston Scientific” and “Dana Holdings” have both expressed great frustration at the increased business costs they are facing. In the midst of this uproar, people are continuing to argue over whether or not government mandated healthcare should be allowed. The fact is, it is on it’s way to being enacted.
“They are simply responding to economic reality. Under ObamaCare, employers with 50 or more full-time workers must provide health insurance for all their workers, paying at least 65% of the cost of a family policy or 85% of the cost of an individual plan. Moreover, the insurance must meet the federal government’s requirements in terms of what benefits are included, meaning that many businesses that offer insurance to their workers today will have to change to new, more expensive plans. ObamaCare’s rules make expansion expensive, particularly for the 500,000 US businesses that have fewer than 100 employees. Suppose that a firm with 49 employees does not provide health benefits. Hiring one more worker will trigger the mandate. The company would now have to provide insurance coverage to all 50 workers or pay a tax penalty.”
This may curb some employer’s decisions to hire new employees, if hiring them is not cost effective. We may see an increase in unemployment and less available jobs. Whether or not Obamacare sticks around past the President’s second term, nobody can say. One thing’s for sure, there is an awkward transition at hand. If businesses continue to fight the transition, workers and potential employees will certainly feel the sting. Consumers as well, with an increase in prices. Repeal is always an option, but it will have to wait in the meanwhile. Obama has claimed the Presidency for the next four years, and there are big changes ahead in the meanwhile that are going to stick. Let’s hope that the transition won’t be too harmful for businesses, or their employees.
Read the original article here.