Friday, September 14, 2012

The Real Hidden Cost of ObamaCare

A couple CPA got together and worked the math on post ObamaCare reform; the results are frightening .
This is the case of a small business “X” and it's burden from the ObamaCare  reform

Small business “X” has 421 employees, 109 of whom are full-time. Of those, “X” provides 30 with health insurance. “X” pays 81 percent of their Blue Cross Blue Shield policy, or $4,073 of $5,028 for individuals, more for families, for a total bill of $129,000 a year. Employees pay $995.

Under Obamacare, however, “X” will have to provide health insurance for all 109 full-time workers, a cost of $444,000, or two and half times more than his current costs. That $315,000 increase is equal to just over half his annual profit, after expenses, or 1.5 percent of sales.

Providing no insurance would result in a federal fine of $158,000, $29,000 more than “X” now spends but the lowest cost possible under the Obamacare law. So “X” now views that as his cap and “X” will either cut worker hours or replace them with machines to get the costs down or dump them on the public health exchange and pay the fine.

But that's not all; most low-wage workers that would have to be covered under Obamacare won't take it because their $995 share is too high, meaning those the program was set up for won't see any benefit. And those who do will because they have major health issues, likely resulting in higher premiums to “X”.
The math is pretty simple for a CPA. For the rest of us, all we have are the words of politicians that promote totalitarian socialism policies as the greatest thing since sliced bread.

The fact is that H.R. 3962 and H.R. 3200 (that's the 2 ObamaCare bills) will severely damage our small business sector, cost hundred of thousands of jobs and deepen the economic stagnation that we have experienced with the Obama government.  

ObamaCare's H.R. 3962 and H.R. 3200 are dangerous pieces of legislation that will adversely affect the small and medium business sector..

The irony is that many businesses are exempt from ObamaCare and the list is constantly growing;  here are some examples:

The U.S. Congress
U.A. Local 13 & Employers Group Insurance Plan*
UFCW & Participating Food Industry Employers Tri-State Health & Welfare Fund
UFCW Allied Trade Health & Welfare Trust
UFCW Local 1262
UFCW Local 1262 and Employers Health & Welfare Fund
UFCW Local 1500 Welfare Fund
UFCW Local 227
UFCW Local 371 Amalgamated Welfare Fund**
UFCW Local One Health Care Fund
UFCW Maximus Local 455
UNITE HERE Local 74 Welfare and Dental Trust
United Agricultural Benefit Trust ††
United Cerebral Palsy of Ulster County, Inc*
United Crafts Benefits Fund**
United Employees Health Plans
United Federation of Teachers Welfare Fund
United Food & Commercial Workers Unions and Employers Local No. 348 Health & Welfare Fund**
United Food & Commercial Workers Unions and Employers Midwest Health Benefits Fund
United Food and Commercial Workers and Employers Arizona
United Food and Commercial Workers and Participating Employers Interstate Health and Welfare Fund
United Food and Commercial Workers Local 1445 New Hampshire
United Food and Commercial Workers Local 1459 and Contributing Employers Health and Welfare Fund**
United Food and Commercial Workers Local 464a**
United Food and Commercial Workers Local 911**
United Food and Commercial Workers Retail Employees and Employers Health and Welfare Plan
United Food and Commercial Workers Union (Mount Laurel, NJ)
United Food and Commercial Workers Union Local 1000
United Food and Commercial Workers Union Local 1000 and Kroger Dallas Health and Welfare Plan
United Food and Commercial Workers Union Local 1459
United Food and Commercial Workers Union Local 1995
United Service Employees Union, Local 377, RWDSU, UFCW
United Wire, Metal & Machine Health & Welfare Fund**
Vernon Sheltered Workshop, Inc. Health and Welfare Plan #501
Williamson Central School District
Wine and Liquor Salesmen of NJ
Wisconsin United Food & Commercial Workers Unions and Employers Health Plan**
World Class Automotive**
Yukon-Kuskokwim Health Corporation*
The Village of Newark Non-Union Employee Plan
Telesis Management Corporation
Teletech Holdings, Inc.
Texas Carpenters and Millwrights Health and Welfare Fund
The Allied Industries Health Fund
The Alternative Living Group, Inc.*
The ARC of Delaware County*
The Arc of Otsego (Otsego County Chapter NYSARC, Inc.)*
The Arc of Rensselaer County*
The Brinkman Corporation
Teamsters Local 210 Affiliated Health and Insurance Fund
Teamsters Local 445 Welfare Plan
Teamsters Local 522 Welfare Fund Roofers Division
Teamsters Local Union 72 Welfare Fund**
Teamsters Local Union 966 Health Fund
Teamsters Union Local # 35
Teamsters Welfare Fund of Northern New Jersey Local 1723
MWIA 28**
Social Service Employees Union Local 371
Sodus Central School District
South Central Laborers’ Health & Welfare Fund
Southeast OBGYN, PC* **
Southeastern Pipetrades Health & Welfare Fund
Southern CA Pipe Trades Trust Fund
Southern Graphic Communication Health Fund
Southern Operators Health Fund**
Southwestern Teamsters Security Fund
Sports Arena Employees’ Local 137 Welfare Fund
Springbrook Standalone HRA*
St. Lawrence NYSARC*
Security Benefit Fund of the Uniformed Firefighters Association of New York City
Security Forces Inc.
SEIU Health & Welfare Fund
SEIU Health and Welfare fund, 2000
SEIU Local 300, Civil Service Forum Employees Welfare Fund
Seneca Cayuga ARC*
Sensient Technologies Corp.
Service Employees 32BJ North Health Benefit Fund*
Service Employees Benefit Fund
Service Employees International Union Local 1 Cleveland Welfare Fund
SFN Group
Sheet Metal Workers Funds of Local Union 38**
Sheet Metal Workers Local No. 177 Health and Welfare, Pension and Vacation Funds
Sheet Metal Workers’ National Health Fund
Sherman Central School District
Shirkey Nursing
Sieben Polk Law Firm
Sierra Video Systems*
Silver Creek Central School District*
Ron Clark Construction Health reimbursement Arrangement*
Roofers Local #96 Health & Welfare Fund
Roofers Local 8 Insurance & Trust Fund
Retail, Wholesale & Dept. Store Union Local 1034 Welfare Fund
Retiree Plan of the Central States, Southeast and Southwest Areas Health and Welfare Fund
Pipe Fitters’ Welfare Fund, Local 597*
Plumbers & Pipefitters Local 123 Welfare Fund
Plumbers & Pipefitters Local Union 823 Health & Welfare Fund
Plumbers & Steamfitters Local No. 6 Health and Welfare Fund
Plumbers and Pipefitters Local 430 Health and Welfare Fund**
Plumbers and Pipefitters Local No. 630 Welfare Fund
Plumbers and Pipefitters Welfare Fund of Local Union No. 719
Plumbers Local Union No. 690 of Philadelphia and Vicinity Health Plan
Operating Engineers Local 835 Health and Welfare Fund
Opportunity Resources, Inc. Health and Welfare Plan
Naples Central School District
Naples Central School District Support Staff
Nassau County Chapter, NYSARC, Inc*
NCHC, Inc.*
NECA-IBEW Local 480 Health and Welfare Plan
New England Health Care Employees Welfare Fund †
Local 1102 Amalgamated Welfare Fund
Local 1102 Health & Benefit Fund
Local 1102 Welfare Fund— Lerner Employees
Local 1245 Health Fund
Local 17 Hospitality Benefit Fund
Local 237 Teamsters Suffolk Regional Off-Track Betting Corp. Health and Welfare Trust Fund
Local 25 SEIU
Local 272 Welfare Fund**
Local 295 Welfare Fund
Local 298 Health Benefit Fund Plan
Local 338 Affiliated Benefit Funds
Local 381 Group Insurance Fund
Local 802 Musicians Health Fund
Local 803 Health and Welfare Fund
Local 805 Welfare Fund
Local 888 UFCW
Laborers’ District Council of Virginia Health and Welfare Trust Fund
Laborers’ International Union of North America Local Union No. 616 Health and Welfare Plan
Laborers National Health and Welfare Fund
Inter-County Hospitalization Plan, Inc.
International Brotherhood of Electrical Workers**
International Brotherhood of Trade Unions Health and Welfare Fund - Local 713
International Union of Bricklayers & Allied Craftworkers
International Union of Operating Engineers Local 295-295C Welfare Trust Fund**
International union of Operating Engineers, Local Union Number 137**
International Union of Operating Engineers, Supplemental Benefit Fund Local 409*
I.B.E.W. Local 1249 Insurance Fund**
IBEW Local 3 NYC Electrical Division Health & Welfare Fund
IBEW Local 613 and Contributing Employers Family Health Plan (Union)
IBEW Local No. 640 and Arizona Chapter NECA Health & Welfare Trust Fund
IBEW Local Union No. 126 Health and Welfare Fund
IBEW Local Union No. 728 Family Healthcare Plan
IBEW No.915
Columbia Sussex Mgmt, LLC
Communicare Health Benefits Trust
Communications Workers of America, Local 1180 Security Benefits Fund
Community Bank of Bergen County*
Community Mainstreaming*
Community Work and Independence Inc.
Construction Workers Local 147 Welfare Fund
Continuing Developmental Services
Contract Cleaners Service Employees Benefit Trust
Alliance One Tobacco
Allied Building Inspectors IUOE Local 211 Welfare Fund
Allied Pilots Association
Allied Welfare Fund
Alpha Omega Home Health, LLC
Altisource Portfolio Solutions
Amalgamated National Health Fund
Amalgamated, Industrial and Toy & Novelty Workers of America, Local 223 Sick Benefit Fund
American Eagle Outfitters
American Farms, PRM Health Plan**
American Fidelity
American Growers Cooling, PRM Health Plan**
American Habilitation Services, Inc. †
American Heritage Life Insurance Company
American Radio Association Plan
Americare Properties, Inc.
24 Hour Fitness
A. Duda & Sons, Inc.
A-1 Realty*
A-1 Transport
ABCO Diecasters*
AccessAbility, Inc.
Ackerman Oil Employee Benefit Trust
Act Trust Mini-Med Plan
Adecco Group, Inc.
Health and Welfare Fund of the Detectives’ Endowment Association, Inc. Police Department City of New York
Health and Welfare Plan of the Laundry, Dry Cleaning Workers & Allied Industry Health Fund, Workers United
Health Care Employees Dental and Medical Trust

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