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How the Obama Health Care Will Stall Business Growth

Updated on August 19, 2013

You probably did not know that in France and in many other European countries where there is universal healthcare for all, like the US plan, the critical number is 50 and higher taxes. In France, numerous regulations kick in regarding how a business of 50+ employees are forced to provide coverage in some manner. A study showed the impact of the French healthcare, which does have some similarities to the US law. There are 1500 companies with 48 employees, 1600 with 49 employees, 660 with 50 and 500 with 51+ employees.

Why?

Like the US Affordable Health law, there is a onerous mandate for companies with 50 or more employees. That is, offer insurance or pay a fine. Firms with less than 50 may not provide health insurance, however, when the employee count hits 50+, a penalty of $2000 per worker after the first 30 employees. So, hiring a 50th employee could cost the business $40,000 in fines. That is real incentive for a business NOT to expand or grow as most want to.

Even before the law officially impacts us all, a Gallup poll of small businesses indicate that 41% of them have already refuse to hire more workers, 38% plan on cutting back in expansion, and the remaining have laid-workers to avoid issues. Studies show that health insurance for these smaller businesses will actually increase by up to 50%.

It is estimated that for family coverage, about 35% of the annual income will go to coverage if you are in a small company of less than 200 and 25% if larger. The average cost for the coverage is nearly $16,000 in premiums. Now, consider those earning $25,000 a year. Many do earn that amount and have families, health coverage is more than 50% . Of course, at the middle, earning $55,000 a year, the $16,000 for health coverage is STILL a major hit.

The worst part of the plan is that if you opt not to take coverage, the first year the fine is around $100, but by 2016-7, a $1000. Many will still take the hit for $1000 at the low income level than pay $16,000 for family packages. The fact is, even if one is not covered and is sick and enters a hospital, they will get health care. No doctor or nurse will not care for them because of no coverage, it is against their oath as doctors and nurses.


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    • Doodlehead profile image

      Doodlehead 4 years ago from Northern California

      Please see my hub about this for what single people would pay. A single person at $25000 income is highly subsidized by others. An employer would only have to cover the employee and not the spouse. The spouse would be able to go to the exchanges and if they showed their income tax return they could get subsidies to help pay for this.

      I am not a fan of Obamacare. Not at all. But as you will see by the charts I have assembled for single people, some are getting a fat deal.

      This all could be a blessing in disguise as doctors are now slaves to the AMA for prescribing pharmaceuticals versus natural herbs. Cayenne pepper for example is about as good as it gets. Point is I work with seniors and they are all virtually wards of the pharmaceutical state and many will do anything the doc says. One is considered "non-compliant" if the doc says to take lisinopril and the patient says no I will start on cayenne pepper.

      The system is so ridiculous that maybe naturopaths will emerge the winners and our health will improve and prices go down. I mean they are already telling the diabetics to use cinnamon. It's slow but happening.

      The small business person is crushed with rules and regulations. For some reason I think the system wants them crushed. I am one and I know they are doing it and is seems purposeful.

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