Even though the employer mandate for Obamacare has been delayed until 2015, the impact it is having on business is still being felt by – mostly by small businesses. A survey of small business owners found that 20% have postponed implementing a growth strategy because of the rising health care costs.
The ACA requires that companies with 50 or more workers provide affordable health coverage for their workers. For many companies, that could mean higher insurance costs. And while the government has put off enforcement of the law until 2015, premiums for 2014 are expected to rise sharply because of the law’s requirements.
CNBC reports today of small businesses and the challenges they face due to Obamacare’s unknowns and rising health care costs. After interviews with small business owners, here are the things that are actually happening because of Obamacare:
- Pushing the cost of increased healthcare to the consumer by raising prices
- Delaying or changing growth strategies to stay below 50 employees
- Reduce any new hiring and cutting the hours of existing employees
- Reduce employee bonuses to pay for the increased cost of healthcare
Last time I checked, those are not good things for employees or for small businesses. While small businesses are cutting costs and finding ways to pay for Obamacare, Congress and their staff get a free ride. See the video below of how “Congress does not want to eat it’s own Obamacare Cookie.”
