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View Diary: Having a tough time countering certain conservative arguments.. (47 comments)

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  •  Point 1 (19+ / 0-)

    The businesses are only required to provide insurance if they have over 25 employees.  If they have less than that, it is optional and they will actually get a tax credit if the provide it.  The fine for not providing insurance for employees 25-50 is only $1,000 each per year, which amounts to about $.50/hour and is cheaper than actually providing insurance.  If his business is growing at the rate where he needs to hire to meet demand would he seriously not hire someone over $.50/hour? Having run a small business myself,  I really don't think think that makes sense.

    •  Thank you for this (2+ / 0-)
      Recommended by:
      lineatus, Killer of Sacred Cows

      Really squashes the shit out of that one.  I'm going to text my buddy right now.

      As someone who has run a small business, do you think that the being required to purchase healthcare (for over 25 people) would be detrimental?  I understand the argument for why it would (if that's normally not the case), but I have no idea what's normally required for businesses with over 25 people.

      •  It's more detrimental under our current system (8+ / 0-)

        where it's optional.  Those business owners who provide insurance are at a cost disadvantage vs. those who don't.  When every business has the requirement, it levels the playing field.

        Even now, there is a certain advantage to providing it.  It will allow a business owner to attract better employees and be more selective in hiring, because potential employees have a choice between an employer who provides a decent benefit package and one who doesn't.

      •  No (6+ / 0-)

        They are not required to purchase healthcare.  They are either required to provide "affordable" healthcare to their employees or pay the fine if the employee has to buy it on the exchange.

        Having run a small business I can't imagine taking a reliable full-time employee and reducing them to part-time and then hiring another part-timeemployee to make up the hours.  Juggling hours among pat-time employees is a headache and their is more turnover, training, and risks of employees not showing up with an all part-time model.  Hiring and retaining a reliable workforce is one of the biggest struggles most small businesses face and there is no way I would ever risk losing a reliable employee over this.

        Keep in mind too that none of this goes into effect until 2014, which is when the mandate and the exchanges will also go into effect.  Right now health insurance costs are rising at the lowest rate in history because of the medical loss ratio requirements in the ACA.  The mandate and exchanges will bring those costs down further and will make it easier for individuals to buy affordable insurance and for employers to provide it.

        •  Thank you! Your info is very helpful nt (0+ / 0-)

          When someone is impatient and says, "I haven't got all day," I always wonder, How can that be? How can you not have all day? George Carlin

          by msmacgyver on Sat Nov 17, 2012 at 09:50:53 AM PST

          [ Parent ]

          •  Think about this: $1 m/ year payroll already if 25 (2+ / 0-)
            Recommended by:
            Neon Mama, msmacgyver

            employees at $40 K a year.  (Its actually more when u add social security matching and other such).

            Now, add health insurance costs @ $ 2500 - 5000 per.  That's only $62,500- 125,000 total more.  (And if you actually pay that much, your not doing a very good job of shopping, Mr. SmallBusinessMan).  

            And in reality the actual cost is less, when you factor in less sick days, less training for new hires, tax deductibility of most if not all health ins costs, etc.

            If you realy can't figure out how to pay for that relatively small net increase in payroll costs, then how did you manage to grow your company to 15 employees in the first place?

            And of course, this assumes a not very likely co. right on the cusp of 25.

    •  25 employees but only makes $60K/yr? (5+ / 0-)

      If that's true, then Captain Smallbusinessman is in desperate need of some business consultation.

      Don't be a DON'T-DO... Be a DO-DO!

      by godwhataklutz on Sat Nov 17, 2012 at 08:23:41 AM PST

      [ Parent ]

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