banner
Business

Delay doesn't diminish business disdain for health law

Posted July 3, 2013

Map Marker  Find News Near Me

— Even with a one-year delay for a key provision of the Affordable Care Act, North Carolina businesses continued to criticize the national health care reform law on Wednesday.

The White House unexpectedly announced Tuesday that businesses with at least 50 employees have until January 2015 to provide health insurance to their workers or face a fine. The mandate was supposedly take effect next January, but the Obama administration relented after small businesses nationwide complained about the cost and complexity of the law.

The North Carolina Chamber believes businesses need more time to understand the financial impact of the law.

"Health care is a top-of-mind issue for North Carolina businesses, cited as one of the key costs impacting job creation and retention," Gary Salamido, the chamber's vice president of government affairs, said in a statement. "As the ACA is coming to bear, many businesses are beginning to incur greater costs. However, they do not know what the health care costs are going to be in the next few years. This uncertainty is a large factor in growing the employment base."

Schulz Iron Works in Raleigh is holding back on hiring even though its business is up by 30 percent.

Manufacturing generic, Schulz Iron Works Businesses still uncertain about health law's impact

Vice President David Schulz said the company could easily add 12 to 15 people to its 39-person payroll, but there are no plans to hire them because of the Affordable Care Act.

"I never want to show that I go over 50 (employees) even if I need them," Schulz said. "What I had to do was be smarter and sub out a division of the project to another company."

The company, which peaked at 75 workers before the recession, dropped employee health coverage four years ago because of the cost, he said.

"We just couldn't afford to provide it," he said. "It's my dream to provide health care for the men, but the economy won't allow us to provide it."

12 Comments

This story is closed for comments.

Oldest First
View all
  • dave17 Jul 9, 2013

    the main thing is getting the younger men and women to join in the group program to get group rate low. Other wise we will never get small buiesness able to get insurance. 401 is easy health insurance is numbers game

  • Wiser_now Jul 5, 2013

    "Obama administration relented after small businesses nationwide complained about the cost and complexity of the law"

    So are the politicians doing anything about the cost or complexity? How will January 15 2015 be any different than Januar 2014?

  • bill0 Jul 5, 2013

    "Want to know, SEE WORKER attitudes and Government regulations. Pension plans, if you do not shift to a 401K model, you are being an foolish."

    Big swing and a miss. There is dramatically less government regulation than there was 40 years ago.

    And 401k's are obviously cheaper for employers - and dramatically worse for workers. That is why businesses lobbied for the tax law (401k) that changed the tax treatments for individual retirement plans vs pensions. Before then, businesses only offered 401k style plans to top executives because they were more expensive.

    " Business being up 30 percent, does not mean REVENUE is up 30 percent and certainly does not necessarily mean BIG profits. "

    Read the article. And yes, revenue up 30% at a business with no additional employment expenses means your profits go up. Way up. Assuming an original 10% profit margin, a 30% increase in rev doubles your margins even if payroll was only your second biggest expense.

  • whatelseisnew Jul 5, 2013

    " Ever hear of a successful company bringing back their pension plan? Me neither."

    I certainly would not. The reality is the 401K is better for the worker. Said worker owns that unlike a pension plan which can be changed drastically and even disappear in the event of bankruptcy. Then the taxpayer has to pick up that pension plan because the Government of course did not collect enough money to pay for defunct pensions.

  • whatelseisnew Jul 5, 2013

    "It wasn't so long ago when owners felt a responsibility for their workers and workers responded with loyalty to their employers. "

    Yeah like those union bakers that decided to stay out on strike despite the company telling them the company would go bankrupt. AH, yes the loyalty, or the GM workers that crippled that company. I feel great those workers got a bonus while the taxpayer gets a 10 billion dollar stick in the eye. But the good news is GM is expanding big time in China.

  • whatelseisnew Jul 5, 2013

    "Business unwilling to comply or is it business cannot afford to comply unless they lay off even more people. This just insures that a small business cannot afford to hire more then 49 employees"

    I watched some testimony from some small business owners during the Senate Committee hearings prior to ObamaCare getting passed. All of them said, based on their then current understanding of the "proposed legislation", they could not handle the costs. I would love to see EVERY company drop their coverage, TODAY.

  • whatelseisnew Jul 5, 2013

    "I don't know what has happened to business owners in the last 40 years, but it has gotten out of hand"

    Want to know, SEE WORKER attitudes and Government regulations. Pension plans, if you do not shift to a 401K model, you are being an foolish. We see the results of out of control Public Sector union pensions. They are bankrupting cities and essentially we have some states close to bankruptcy because of these out of control labor and benefit costs. I don't know of any business that has had FLAT costs. Business being up 30 percent, does not mean REVENUE is up 30 percent and certainly does not necessarily mean BIG profits. Energy, Taxes, and Regulatory costs are crippling businesses. ObamaCare was just another great big knife in all of our backs courtesy of a bunch of dolts in Washington.

  • bill0 Jul 5, 2013

    Oh, cry me a river. Revenue is up 30% with the same number of employees for the business. Revenue Up + Costs flat = big profits for the owner. Nothing wrong with making money, but don't whine about it! This company provided health insurance prior the recession. Now, they are complaining about the possibility of having to treat their workers with the same level of respect that they did 4 years ago?

    I don't know what has happened to business owners in the last 40 years, but it has gotten out of hand. It wasn't so long ago when owners felt a responsibility for their workers and workers responded with loyalty to their employers. If they needed to make cuts because business was down, they were committed for restoring them once business improved. Everyone sacrificed in the short term and were rewarded in the long term. Now? Ha! Ever hear of a successful company bringing back their pension plan? Me neither.

  • itlsss Jul 5, 2013

    Uncertainty and indecision from the White House, just what we need in a shaky economy.

  • dsdaughtry Jul 3, 2013

    I agree that businesses are unwilling to comply. Companies have 401K, life insurance and other perks and benefits. But they pay for them or switch providers in order to find the best value for its employees. However, what I do see is companies dropping all benefits and then providing a much higher CEO payout instead.

More...