Affordable Care Act Prompts Small Firms to Drop Health Insurance, Limit Hiring

Here is an article from the local newspaper about a survey done here in West Michigan.

I saw this coming the moment I heard that the Affordable Care Act required companies with more than 50 employees to provide insurance. So naturally the smaller businesses would opt out of offering insurance, not to mention that the larger ones would cut hours down to 30 or less to do the same.

GRAND RAPIDS, MI – Many small businesses in West and Southwest Michigan plan to drop health insurance coverage for employees and limit hiring, according to a new survey measuring the impact of the Affordable Care Act.

The Grand Valley State University survey released Thursday, Jan. 22, found a quarter of small businesses that now offer health insurance do not plan to provide coverage in 2015. Only half said they plan to offer insurance in 2016. And of companies dropping coverage this year, 68 percent said they will encourage workers to buy insurance on the public exchange.
. . . The survey also found many employers plan to shift more insurance costs to workers, often in the form of high-deductible plans or changes in prescription drug coverage.

Article One

Here is a related survey about less hiring and having fewer hours in response to the ACA.

Affordable Care Act impact: 1,000 fewer workers in West Michigan, survey finds

GRAND RAPIDS, MI – In response to the Affordable Care Act, West Michigan businesses have hired 1,000 fewer workers, according to a survey by Grand Valley State University researchers.

The report found many employers are reducing workers’ hours or limiting hiring and passing more health care costs to employees in reaction to the changes brought about by health care reform. Economics professors Leslie Muller and Paul Isely surveyed local businesses in Kent, Ottawa, Muskegon and Allegan counties.

Article Two

Not hard to predict something like this happening, I'm sure that the law makers could have figured that out if they had actually read it before passing this mess. On second thought perhaps they did know.

Now we have insurance companies raking in more customers under threat of the IRS. Also with more people working two or more jobs at less than full time, you effectively have people working some 20 more hours a week and nobody has to pay them over time. It probably makes the employment numbers and economy look better too. When a bunch of people start dropping dead on their feet in the work place, will that be time for some change we can believe in?

a reply to: MichiganSwampBuck

I'm old enough to remember when companies (for the most part) didn't offer health insurance.

It was a rare "perk".

Now, though? It isn't enough that companies have to pay you, they also have to see to it that you have health insurance.

Individuality is gone.
Self-reliance is gone.

Say hello to the entitlement, nanny-state.

a reply to: beezzer

Good to see you on one of my posts Beezzer.

Maybe the next thing will be dialing back the clock in some other legislation so we can work around child labor laws. Who knows what's next?

originally posted by: beezzer
a reply to: MichiganSwampBuck

I'm old enough to remember when companies (for the most part) didn't offer health insurance.

It was a rare "perk".

Now, though? It isn't enough that companies have to pay you, they also have to see to it that you have health insurance.

Individuality is gone.
Self-reliance is gone.

Say hello to the entitlement, nanny-state.

Isn't that the truth!

Back in the day, to have a job with out bennies, was a PUSH to better yourself! Instead, fast forward to today, where the politicians have killed the good jobs by outsourcing them, and BS the people into demanding a higher minimum wage!

Nice trick for those who willingly buy into it, but instead of supporting the politicians pushing for a higher minimum wage, perhaps "we the people" should start demanding that they bring back our manufacturing jobs?

a reply to: beezzer

Oh yeah!

Corporate products are now human rights!

Long live the fascists. They who gave us the affordable care act.