Categorized | Health

More ObamaCare Health Care Costs Killing Jobs

Even more major employers are announcing millions of dollars in new costs this week thanks to Democrats’ job-killing health care bill, while small business owners fret that they’ll be next.

Last week, we saw that Caterpillar and John Deere announced the new law will cost each around $100 million each in new taxes. AT&T announced it would cost the company $1 billion, AK Steel said the law will cost it $31 million, and 3M said it will cost that company $90 million.

Yesterday, Prudential Financial announced that the health care bill will cost it $100 million and Illinois Tool Works said their company will see a $22 million cost.

Today, the AP reports, “Boeing says it will take a charge of $150 million due to the recent health care overhaul legislation. The aircraft maker, based in Chicago, says the charge will hurt earnings by 20 cents per share in the first quarter of 2010.”

And according to the Charlotte Business Journal, aerospace and defense industry supplier “Goodrich Corp. says it expects to incur a one-time charge of $10 million, or 8 cents per diluted share, against its first-quarter results. The company cites the recently passed U.S. health-care reform legislation.”

Apparently appalled that their massive $2.6 trillion takeover of 1/6th of the economy is generating trouble for businesses and negatives headlines, Democrats have demanded explanations. The Wall Street Journal writes in an editorial today, “Democrats have responded to these writedowns not by rethinking their policy blunder but by hauling the CEOs before Congress on April 21 for an intimidation session. The letter demanding their attendance from House barons Henry Waxman and Bart Stupak declared that ‘The new law is designed to expand coverage and bring down costs, so your assertions are a matter of concern.’”

Meanwhile, small businesses are worried that the mandates and fines in the Democrats’ health care bill will fall on them as well. Already tanning salon owners and employees across the country are reeling from the new tax imposed on their businesses. But today, another AP story points out, “The national law doesn’t require businesses offer insurance but hits employers with 50 or more workers with an annual $2,000-per-employee fee if the company doesn’t insure them and the government ends up subsidizing their workers’ coverage. . . . For critics, one of the most troubling aspects of the laws is the fines. Massachusetts has already fined more than 1,000 companies over $18 million for failing to offer medical insurance to their workers. . . .

“Such penalties make Doug Newman, owner of Newman Concrete Services in Richmond, Maine, nervous. In the past 18 months, as the economy battered the construction industry, Newman’s work force shrunk from 125 employees to just 25. He is worried that once the economy turns and he begins to hire back workers, he’ll face a critical decision when he nears the 50-worker mark and is no longer exempt from penalties. Newman now pays 60 percent of his employees’ individual premiums and 40 percent of their family premiums. ‘The 51st employee could mean $100,000 in costs. I’ve been calling it the concrete ceiling,’ he said. ‘No employer is going to hire No. 51 if it brings all these mandates down on you, because they’re pretty onerous.’”

It’s been just one week since President Obama signed his unpopular health care bill into law and so far we’ve seen major employers hit with millions of dollars in new costs, other companies preparing to lay workers off, some small businesses hit with a new tanning tax, and others bracing for the impact of new fees and mandates.

This health care bill is a job killer, and it should be repealed and replaced. As House Republican Leader John Boehner told The New York Times yesterday, “Republicans will fight to repeal ObamaCare and replace it with common-sense reforms that focus on lowering health care costs while protecting American jobs.” Senate Republican Leader Mitch McConnell said much the same thing on Saturday: “That’s why [Americans have] been clamoring for a different approach, and that’s why Republicans are committed to repealing this bill and replacing it with common sense solutions that achieve the good things that folks on both sides want to achieve without all the nasty consequences we’re already beginning to see.”

About Tom White

Tom is a US Navy Veteran, owns an Insurance Agency and is currently an IT Manager for a Virginia Distributor. He has been published in American Thinker, currently writes for the Richmond Examiner as well as Virginia Right! Blog. Tom lives in Hanover County, Va and is involved in politics at every level and is a Recovering Republican who has finally had enough of the War on Conservatives in progress with the Leadership of the GOP on a National Level.

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Tom White Says:

Nothing is more conservative than a republican wanting to get their majority back. And nothing is more liberal than a republican WITH a majority.

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