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The Affordable Care Act: A Small Business Booster

The CCW (Conservative Conventional Wisdom) insists that the Affordable Care Act is a “job killer.” But for small businesses, it may be just what the doctor ordered.

Some of us are wishing happy two-year birthday this week to the Affordable Care Act. Some of us are not and are praying the U.S. Supreme Court strikes it down.

And that's understandable because of the philosophical differences between those for and those against the ACA. Nevertheless, what many of us — except those who still regard America as having the best health coverage on earth despite the statistics — there is the recognition that our current system is unsustainable.

Small business is one of the segments of our economy that has especially felt the impact of our dysfunctional healthcare system, hard. Over half the bankruptcies in this country are a result of medical bills, and no doubt many small business owners have had to close up shop when they hit the financial rocks.

This fact is very true here in Wisconsin, which has some of the highest health insurance costs in the country. An independent contractor friend of mine recounts how his health insurance premiums are higher than his house payments.

The real job creators in this country are smaller businesses, and for years they have had to struggle with the challenge of hiring staff in the face of rapidly rising health insurance premiums while dealing with competition from big business for the talent they need. Too many have this choice decided for them. For those who feel that government has been the enemy of small business, they are forgetting the damaging effects big insurance companies have had on families and on small business success.

Until they become big businesses, the plight of small business owners and their employees is no different than the average person. During the first half of 2011, one in three Americans lived in a family that struggled to pay medical bills, and many small business owners, and especially new start-ups, are among those. A recent survey by the Small Business Majority found that providing health insurance was the prime concern of small businesses.

With all the burdens faced by small businesses to make it from year to year, a smart country would find a way to lift the healthcare load. Certainly the ACA is a step towards achieving that goal.

Over the past two years since the enactment of the ACA, small businesses throughout the country have already benefitted from new access to tax credits, which help to lower premiums. In 2011, 62,800 Wisconsin businesses qualified for a tax credit. This feature enables small businesses to offer comprehensive coverage like never before. Small Business Majority found in another survey conducted in 2011 that one-third of small business owners who didn't offer insurance would be more likely to do so because of these provisions.

Here are the unappreciated benefits. Most small businesses function like a team. For one of those team members to deal with a personal health problem affecting themselves or a member of their family is a major distraction. Throw in the collateral worries of having to pay for those procedures if all the team members "are going naked" in terms of healthcare coverage.

The Affordable Care Act enables a leveling of the playing field. The name of the game is attracting talent, and a small company is at a distinct disadvantage if they can't afford to offer healthcare to attract that talent.

Of course the big news is the announcement last week by Common Ground of a $56.4 million federal loan to set up a health care cooperative to serve the insurance needs small businesses and others in southeastern Wisconsin. The loan was made possible thanks to the Affordable Care Act, and like all of the other cooperatives sprouting up across the country, the plan will activate in 2014, enabling main street small businesses to have the mass buying power of big business.

It would be foolish for anyone to think we can afford to do nothing when it comes to reforming healthcare in America. The nibbling around the edge solutions proposed by the right is not going to cut it. For all the faults of the Canadian health care system, at least business owners don't have to waste hundreds of hours dealing with their company's health care plans like their competition in the States.

For better or worse, President Obama laid a pile of political chips on launching this bill, and many, including a fair number of Democrats, felt that early 2010 was the wrong time to do this, especially with the demands for improving employment in the depths of this recession.

But this was the only time to pass something this major when the President's popularity and political capital was at their peaks.

Turns out, in reality the President and the Congress enacted a jobs bill — for the long run. By working to lift the burden of health care coverage, small business owners and their teams can focus on what they do best and what is the best for this country — create jobs. 

James R Hoffa April 2, 2012 at 04:09 pm
ttp://www.theblaze.com/stories/how-many-businesses-are-exempt-the-final-number-of-obamacare-waivers-is-in/
http://nation.foxnews.com/nancy-pelosi/2011/10/29/pelosi-defends-obamacare-waivers-1800-firms-theyre-small-companies http://dailycaller.com/2011/05/17/nearly-20-percent-of-new-obamacare-waivers-are-gourmet-restaurants-nightclubs-fancy-hotels-in-nancy-pelosi%E2%80%99s-district/ So, where's the waiver for my small business family restaurant? How come others received one, particularly in Pelosi's district, but not a small businessman's family restaurant in Wisconsin? I thought a federal judge just said that the government can't treat special interests differently in ruling against parts of Act 10, didn't he? So this selective picking and choosing of who gets an Obamacare waiver would appear to be unconstitutional under such a precedent, wouldn't it? After all, if restaurants politically connected to Pelosi get a waiver, then shouldn't all restaurants get a waiver? That would appear to be the crux of the judge's opinion in the recent Act 10 case. So what exactly am I missing here? You're honestly going to sit there and tell Hoffa that this doesn't stink to high heaven??? COME ON!!! I'm getting SICK of this CRAP!!! REPEAL AND VOTE THE BUM OUT!!!
Randy1949 April 2, 2012 at 04:20 pm
@Bob McBride --At least under the new law people with pre-existing conditions are not uninsurable for those illnesses. And a company can't collect your premiums for years while you're healthy and then drop you once you get sick. That is a very big improvement.
The people I see objecting are those who have coverage and are afraid it will reduce in quality or they'll lose it altogether. And I'll say, are you content with a system like this? It can happen to you at any time regardless, and then you might see things differently.
Ed Holladay April 2, 2012 at 04:37 pm
Sadly, Bush and company did nothing as the cost of health care skyrocketed. Predictably we are now saddled with a left wing solution.
I am willing to live with it though. If for no other reason than 6 years of Bush with Republican controlled congress did nothing significant about the issue. That was a shameful waste of that time. I personally think that our economy is being dumped on its head due to the ridiculous cost of health care. It is the sentinel domestic policy issue of our time.
Randy1949 April 2, 2012 at 04:37 pm
@Bob McBride -- I'm sure your business owner friend said what he said and he believes it. But does he believe it because he has looked over hard figures of what his costs will be under the new law, or is he just reacting to something he heard on talk radio? Big difference.
@JRH -- What do you provide for your employees now? Do they have an insurance plan, and if not, do you pay them enough to purchase a plan of their own? If neither is the case, you should probably drop insisting how people should be responsible for their own care, because it's simply impossible.
Randy1949 April 2, 2012 at 04:46 pm
I think the first question is why the cost of healthcare skyrocketed. Define cost -- is it health insurance premiums, or is it the cost of prescriptions, doctors and hospital fees after removing the middle man? Why does a day in the hospital cost upwards of two thousand dollars a day now?
Ed Holladay April 2, 2012 at 05:11 pm
Is it greedy insurance companies? Is it greedy hospitals? Is it illegal immigrants? Is it greedy pharma?
Good question. I just think something is clearly out of whack. My best guess is that it is some sort of manipulation by those making better than 100 million a year off health care. In any case, it would be nice if someone could do us a favor in the middle and lower class.
J. B. Schmidt April 2, 2012 at 05:31 pm
So let see if I follow the health care timeline correctly. We have health insurance. The government over the years intervened to supposedly help. They increased regulation, which increased the cost. They created medicare/caid which doesn't pay back at the same rate, which jacked up the prices. They said all people must receive emergency care regardless if they could pay, which jacked up the prices. Now with prices high, they are telling us the only way to solve the problem is turn the entire thing over to the government?
Sounds like I fell through the rabbit hole.
Randy1949 April 2, 2012 at 05:34 pm
@J.B. Schmidt -- Wait a minute -- Medicaid jacked the price? I will agree that Medicaid encourages a little creative exaggerating of services performed. But you have to be aware that insurance companies negotiate their own rates of return with doctors and hospitals, which does the same thing. Are you actually blaming the high cost of medical care on Medicaid and Medicare?
J. B. Schmidt April 2, 2012 at 05:40 pm
@Randy
Not soley, as a listed a couple of factors. However, if one group of people is not paying the rate required then the other group must suck of the slack. As for ins and dr negotiating the rates. Both has a vested interested and I don't think the dr. are going to negotiate a rate below what the service require. If insurance were left with fewer regulations, then consumers would be in a better position to shop around. This competitive shopping would force the insurance companies to be working harder to lower prices.
Ed Holladay April 2, 2012 at 05:43 pm
regulations do not drive up cost needlessly. Bad regulations do though. We need good regulation. Without any regulation, we have what we did in this nation 100 years ago. That was not good.
Taoist Crocodile April 2, 2012 at 05:46 pm
Let's take a trip to JB's alternate universe, where none of the terrible things that he mentioned ever happened. It's a lot like ours, except for the fact that hospital entrances are virtually blocked by the diseased and bleeding bodies of the poor (who couldn't afford health insurance or health care), the elderly (ditto), and a few poor saps who left their insurance cards at home and were refused treatment.
Really, complaining about the fact that emergency rooms have to treat everyone is a new low. I was in that position once (health insurance, but didn't have my card on me), so they treated me and sent me the bill. Worked just fine. If you want to know why the cost of health care is so high, read Atul Gawande's "The Cost Conundrum" (article in the New Yorker, won't take you more than 20 minutes). Then you can return with some more insightful, less threadbare things to say on the subject.
James R Hoffa April 2, 2012 at 05:57 pm
@Randy1949 -
I'll answer your questions once you can adequately explain to me how it's fair that small restaurants in Pelosi's district, and some large-scale franchises such as McDonalds, were able to receive waivers from Obamacare, but not every restaurant or franchise was privy to that same privilege. According to Pelosi, those waivers were justified because "those businesses are very small." So, could you explain for me what liberals consider a 'large' business as being, cause personally, I always thought that McDonald's was pretty large. It's definitely bigger than my little one store front family restaurant!
Randy1949 April 2, 2012 at 06:01 pm
Yes, JB, but you know that doctors and hospitals do charge the out of pocket patients more than the insured ones. Which means that if you have no insurance and a minimal ability to pay you are doubly out of luck.
Bob McBride April 2, 2012 at 06:02 pm
Randy,
Based on the limited discussion I had with him, the best conclusion I can draw was that his main concern was going to be the additional cost associated with having to provide insurance for his employee's kids 26 or under. I base that on what he said at the time. He doesn't strike me as the type that makes business decisions based on what he hears on talk radio. In fact, I'd be hard pressed to think of anyone who does. Let me ask you a question along the same lines. Are you basing this as being beneficial to you based on some figures you have that represent what things will cost, post ACA going into effect? Or are you basing it on something you heard on MSNBC? Big difference. Putting that nonsense aside, I don't think anyone knows exactly what the costs are going to be. But based on the fact that coverage is still going to be provided by the insurance companies and they aren't going to give away the additional coverage, as in my friend's case, free, I think it's safe to assume that if he thinks it's going to cost him more, he's probably right.
Randy1949 April 2, 2012 at 06:06 pm
Part of it is medical advances and expensive technology. Almost sixty years ago, three of my siblings developed kidney failure as infants. They died. Today there would be dialysis and transplants and a lifetime of anti-rejection drugs, all very expensive.
I think the hospitals spread out the cost of those very expensive MRI machines into the daily cost of a bed. It's a mixed blessing -- we can cure so much more, but it comes at the price of financial ruin for some of the people cured, or even those who die.
St. Swithin April 2, 2012 at 06:08 pm
Deep breath there JRH! If your business didn't get a waiver it's probably because you didn't request one. That's what all these other waivers are. From http://tiny.cc/48i5bw :
"Many of the waivers are for limited benefit or so called "mini-med" plans—controversial rock-bottom plans that provide a very limited amount of coverage (sometimes as little as $2,000 a year) to beneficiaries that are used heavily in low-wage industries like the restaurant business. New federal rules require such plans to offer a minimum of $750,000 of coverage annually, and the waivers exempt the mini-med plans from such rules on a case-by-case basis." Your three links are all basically for the same heavily slanted story that implies without proof that Pelosi is doing favors for someone. The waiver grants are mostly in Democratic districts because Republican areas are not getting the word. I think it's a shame that a lot of small business people have gotten bad info from right-wing sources and are missing the opportunity to get this waiver.
Taoist Crocodile April 2, 2012 at 06:09 pm
Taoist Crocodile
29 seconds ago Actually, here's another fascinating article by the same author, about how only a small number of super-unhealthy people require a massive amount of healthcare, driving up costs in a geographic area: http://www.newyorker.com/reporting/2011/01/24/110124fa_fact_gawande?currentPage=1 Now, what's the preferred approach to this problem? In JB's case, it seems to be "f--k those people; let 'em die." Or, you could take the holistic social-service approach indicated in the article, and wind up improving outcomes and decreasing the amount of care consumed by these few people.
Bob McBride April 2, 2012 at 06:13 pm
Randy, given whose going to be the "payer" (hint: the same insurance companies everyone hates now) what makes you think you're going to be anymore able to afford insurance adjusted to cover pre-existing conditions than you are now? Again, do you think that the costs associated with covering pre-existing conditions are going to be absorbed by the insurance companies. If there's no cost control in place, you have no assurance they won't. And if this increases the cost of insurance across the board astronomically (not a stretch by any circumstances), odds are even more people will be going w/o coverage. Unless you're into the whole "misery loves company" thing, there's unlikely to be any beneficial payoff for you, either.
Think it through, Randy. That's all we can do at this point. There are no guarantees that what you've been told is going to happen is even remotely close to what will happen, because the one thing that needs to be controlled in order for it to work as described, isn't being controlled.
Randy1949 April 2, 2012 at 06:27 pm
@JRH -- St. Swithin beat me to the punch with the info about the 'mini-meds' and the yearly and lifetime caps.
Randy1949 April 2, 2012 at 06:35 pm
@Bob McBride -- No, I am certainly not basing this on something I heard on MSNBC. I'm coming from over twenty years of being without health insurance now (with the exception of one year in 1996) and trying to obtain a private plan. I've been turned down flat once because of a medication I was taking at the time (an anti-depressant which I no longer take) and all the rest was because the premiums were out of sight for our income.
I'm nervous about what will happen in 2014 -- whether I'll be able to find anything affordable even with the subsidies. But it's nerve-racking having no insurance at all.
Bob McBride April 2, 2012 at 06:48 pm
Randy, other than the fact that I shuttered my sole proprietorship and went back to work for someone who provided insurance, nothing you mention there hasn't happened to me. Which is precisely why I refuse to believe that the insurance companies are going to play along with this scheme by reversing course and not increasing costs to the purchaser to cover those they incur as a result of being forced to cover pre-existing conditions and the like. And if there are no cost controls associated with this, talk of subsidies as a means of making it any more affordable is pointless.
Randy1949 April 2, 2012 at 06:52 pm
I have, in the past several years, actually taken the informed risk of NOT going to the ER after a bad fall because of the cost involved. The last thing I could afford was a $3000 bill for X-rays just to be told, yeah, it's broken, go home and take some aspirin, it'll heal on its own in several months. (The bone in question was one that couldn't be set anyway.) I figured that if the pain got worse I could see my own physician in the next few days.
It makes me angry when people talk about ERs as if they're free healthcare providers. They're not.
Randy1949 April 2, 2012 at 07:10 pm
So what's your solution, then Bob McBride? Undo the whole thing and those who will inevitably left out should just accept it with good grace so people who still have insurance can keep it?
If you'll recall, the ACA originally included a public option that would have covered people without putting the burden on the private insurance companies. By the way, I have no pre-existing conditions other than my age. I'm computing my chances of getting cancer before age 65, and they are tolerable. If not, under the ACA, there is the high risk pool at least.
James R Hoffa April 2, 2012 at 07:22 pm
You honestly expect me to buy an analysis of the situation performed by Mother Jones!!! I'm waiting for someone to say April Fool's!
WRONG! I did apply. I was told that no more waivers were being offered. Also, why are the waivers only offered on a 'case by case' basis instead of a blanket covering the entire restaurant industry? And why are labor unions lumped into the groups that were given waivers? Was the IBT really only giving mini-med plans to those on their payroll? Wake up!!! You guys may not realize this, but my small family restaurant isn't pulling Bentleys, Rolls Royces, and Aston Martins in the parking lot every night like the restaurants that received waivers in Pelosi's district do. And yes, my restaurant currently does offer mini-med plans to full time employees, as something was deemed to be better than nothing. Under the new rules of the ACA, the coverage has to be higher so my cost will go up substantially. I'm seriously considering paying the fine instead of offering any coverage at all. May even have to close up shop. As it stands, the place only cleared 15k in profit last year. If the ACA eats into that profit margin, it won't be worth my effort anymore. Then, all those jobs and the tax revenues disappear. Is that really what you guys want to see happen? REPEAL AND VOTE THE BUM OUT!!!
Bob McBride April 2, 2012 at 09:19 pm
...and that option is no longer there. Since it's a key component without which there's no assurance of any cost controls, you don't move ahead with ACA as is.
You create a system that addresses the needs of those who can't afford health insurance w/o messing up the system for those who have it through employers - i.e., a public option. You start there. If the public option is workable, THEN if you want to encourage others to move to it, you do so. You don't start by enlarging the pool and then have them fend for themselves in the marketplace while you try to figure out how to make it "affordable" for them. You don't have an architect draw up plans for a building and then not build the first two floors due to a disagreement over the design and expect the building to support itself by hovering over the foundation. ACA w/o the public option is that building. Again, "something" isn't always better than nothing.
Randy1949 April 2, 2012 at 09:29 pm
In that case, your problem is with the GOP members in committee who did away with the public option. Unless the aim of the opposition all along was to amend the bill until it was so odious that the whole thing would be rejected, and then we're back at square one.
Randy1949 April 2, 2012 at 09:34 pm
http://en.wikipedia.org/wiki/Health_insurance_exchange
"There was a long struggle between Obama's advocates and free-market health care advocates over the question of a "public option", which would have created a federal public-benefit corporation subsidized to compete with the private companies in the exchange. Republicans and their allies eventually defeated this "public option" idea by arguing that the public nature of such a company would give an unfair edge over the private organizations in the exchange and would "unfairly out-compete" the private insurers. After a group of Corporate Senate Democrats and Joseph Lieberman joined Republicans in their objections to the public option, the PPACA was passed without a public option included, ensuring the insurance exchange would be inevitably composed purely of the private health insurers.[9]"
Bob McBride April 2, 2012 at 09:34 pm
Or you could blame the Dems for not being able to get the job done. Either way, it doesn't matter. It's not there and w/o it, it won't work.
Randy1949 April 2, 2012 at 09:41 pm
I blame the more conservative elements of Congress for protecting the interests of private corporations instead of the health of their constituents. My point is that the bill started out exactly as you had proposed and was blocked. And now you dismiss the entire idea.
Bob McBride April 2, 2012 at 10:28 pm
Yes, Randy, I do. I reject it because it's not going to work as-is. I should be for it? Why?
Good lord....

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Can you stop hating it for an hour?
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So? What was used and what harm does it cause? Although ironic this may provide more good thanRead More harm. What is written on the application sign?
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The bluff and other areas need to be planted with things that will snuff out the weeds. They areRead More harmful to animals and possibly birds, of which there are many at atwater. Obviously not many animals but there are squirrels and rabbits and other native mammals. Not to mention the kids at the play area. Most adult humans can handle an occasional wiff of a pesticide but not children or animals. I have held several pesticide licenses in my day so I have had much course work on this. I am surprised the village has done this but I know restoration is about to begin - again - on the bluff and perhaps they are trying to rid the bluff of all the weeds. It is a shame that the 15+ kids they hire every year can't be up there weeding instead. I don't know what else they could be doing as the village has reduced the amount of annual flower beds that need to be maintained.
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The liberal minded Patch had it going their way for some time. Then, the contrary opinions became aRead More "voice to be heard". So, like all liberal media, just shut down the "free speech". Speech that educates the people is a NO-NO in the world of "public education". Have no fear, other avenues to educate the public is on the way.
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Given the amount of liberal propaganda that is posted around here, one does have to wonder if PatchRead More intended to make it more difficult to reply to comments (and set the record straight)...
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Walker celebrates after defeating the liberal unionista blue fisters
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Are you assuming we're stupid Steve? Don't. BTW -- you called yourselves Tea Baggers. We're onlyRead More using the term you selected. What a great PR roll-up for this group of Neanderthals. You're problem with that any fister reference is usually the speaker feels it is where his head should be.
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"I think if you look at most of the sites still running the older version, you'll see the sameRead More messages of impending doom we got just before the change... " | I think that's true, Bob. I poked around at a number of Patch sites around the country and the 'Welcome to the New Patch' articles were full of the same complaints we are seeing here. | This Patch redesign seems to be the 'New Coke' of websites...
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Starting at ONLY $70,000.00 Time to cash in your aluminum cans.