Tag Archive for 'Obamacare'

SBA Poll: 3rd Birthday of Obamacare

The Question:
On the 3rd birthday of Obamacare, what do you think about this law?

10% - Obamacare was needed and will become very successful for Americans.

81% - Obamacare is one of the worst laws ever passed and will hurt America.

10% - It’s too soon to tell.

My Comments:
Obamacare has never been popular with the general public. If it has ever enjoyed a favorable rating above its unfavorable percentage, that position was short lived. Indeed, today the law’s favorable numbers are 37% against a 40% unfavorable rating.

But if you want to see where the most discontentment is toward Obamacare, talk to the small business community as we did, and as you can see with our most recent online poll. I’ll have more to say about the 3rd anniversary of Obamacare in an upcoming Feature Article. Stay tuned.

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Be sure to listen my segments from The Small Business Advocate Show with Grace-Marie Turner on Obamacare. Grace-Marie is president of the Galen Institute, which promotes public education on health and tax policy issues. She is a founding member of the Consensus Group, a former executive director of the National Commission on Economic Growth and Tax Reform, and senior advisor to presidential candidate Steve Forbes.

How much could health insurance cost under Obamacare? - with Grace-Marie Turner

Why Obamacare will likely hurt those it was supposed to help - with Grace-Marie Turner

Why unions are surprised Obamacare is not good for them - with Grace-Marie Turner

Check out more of Jim’s great content HERE!

Take this week’s poll HERE!

Watch Jim’s videos HERE!

Small Business Advocate Poll: How will Obamacare impact your small Business?

The Question:
The Supreme Court has upheld most of Obamacare, how will this decision impact your small business?

44% - This will hurt my business

4% - This will be good for my business

42% - I don’t know, but I’m afraid of Obamacare

10% - I don’t know, but I’m not worried about it

My Comments:
Obamacare has survived a Supreme Court challenge and been judged to be constitutional. We wanted to know what our small business audience thought about that, so last week, in our online poll, we asked this question: “The Supreme Court has upheld most of Obamacare, how will this decision impact your small business?” Here’s what we learned.

Just 4% of our sample said, “This will be good for my business,” while 10% said “I don’t know, but I’m not worried about it.” But 44% reported that Obamacare, “will hurt my business,” and 42% allowed, “I don’t know, but I’m afraid of Obamacare.”

Obamacare is the law of the land, unless and until the next Congress and a new president repeals it. In fact, part of the narrative in Chief Justice Roberts’ ruling indicated that the ultimate decision about such a sweeping law should rest with the electorate.

There are 26 million small business owners in the U.S. and another 70 million small business employees. That’s a lot of votes that could be influenced by the anti-Obamacare sentiment - 86% - demonstrated in our poll.

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I’ve talked to several people in the last couple of weeks on the impact of the Supreme Court’s Obamacare decision on the economy, including Michael Reagan, son of Ronald Reagan and author of The New Reagan Revolution; and Barbara Weltman, small business attorney and author of J.K.Lasser’s Small Business Taxes. Click on the links below to download or listen.

Gobsmacked by SCOTUS with Jim Blasingame

Michael Reagan on the Supreme Court ruling on Obamacare with Michael Reagan

Obamacare my be constitutional, but businesses still uncertain with Barbara Weltman

What will Obamacare cost your small business? with Barbara Weltman

Check out more great SBA content HERE!

Take this week’s poll HERE!

Gobsmacked!

Gobsmacked!

That’s how I felt when I heard the news about the Supreme Court ruling on Obamacare. It’s not that I believed the law would be found constitutional - I gave up trying to predict the high court a long time ago.

And it wasn’t even that Chief Justice Roberts, not Justice Kennedy, was the swing vote. Grace-Marie Turner, president of the Galen Institute, health care policy expert and frequent guest on my radio show had warned us more than once not to be surprised if this happened.

The part that gobsmacked me, and basically everyone else, was the method that Roberts used in order to find a way to render Obamacare constitutional, which was nothing short of contrived (I promise, I’m using this word as the best way to describe his decision, not to be pejorative). Writing for the majority, Roberts divined that the individual mandate, the financial linchpin of the law and the most controversial element, is a tax. And since the Constitution gives Congress the power to tax citizens, the mandate is constitutional.

All of this would be well and good, except that for three years, the namesake of Obamacare and all of its other proponents vociferously argued that the individual mandate is a penalty, and absolutely NOT a tax. In fact, the high court ruling actually included that Congress does not have the right to expand the interpretation of the Commerce Clause (Article I, Section 8, Clause 3, of the U.S. Constitution) to include penalizing a citizen for not buying a product or service. (And that’s good news as a precedent for the future.)

So, based on that decision, Obamacare would not be constitutional if it were considered as written, passed by Congress and signed by the President. But since Justice Roberts - and the four so-called, “liberal” judges making up the majority - transmogrified the penalty in front of them into a tax, that allowed Obamacare to be rendered constitutional.

Some say Roberts made his decision to prevent his court from being perceived as partisan, the way the Rehnquist court was after the 2000 Bush v Gore decision. Some say - and a part of his written opinion actually intimates this - that Roberts felt the future of Obamacare should ultimately rest in the hands of the electorate, which he knew would be possible in barely more than four months.

By voting with the liberal wing of the court, Chief Justice Roberts declared his independence and demonstrated intellectual honesty; both are traits I admire very much. But, alas, I fear the contrived method he used - turning a penalty into a tax - to produce this particular ruling may go down in history as not the finest hour of this chief justice.

Finally, here’s a political observation: The Roberts’ ruling on Obamacare was a gift to Republicans, but not the way many pundits are saying. I think it will result in longer coattails for Mitt Romney on November 6 with the down-ballot candidates, like the House and Senate, to a degree that he would not have been able to achieve on his own.

We continue to live the Chinese curse: “May you live in interesting times.”

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Since last week’s Supreme Court ruling on the Patient Protection and Affordable Care Act, I have talked with several experts on my radio program, including Michael Reagan, Barbara Weltman, Grace-Marie Turner and Rich Galen, on what will happen now - from the potential costs and implementation of the bill to the politics and possibility of repeal. Click here to see the list of guests and listen or download any of our conversations.

Check out more great SBA content HERE!

Is ObamaCare good for small businesses?

The Patient Protection and Affordable Care Act, aka Obamacare, was passed by Congress and signed into law by President Obama two years ago. It was considered the signature accomplishment of the president’s first term.

Obamacare was hailed as comprehensive health care reform that would not increase the deficit and would solve rising insurance costs for small businesses. Two years hence, here is evidence that seem to refute these claims.

  1. The initial price tag for Obamacare was $940 billion over 10 years. The Congressional Budget Office (CBO) recently reported the new estimate to be $1.76 trillion over 10 years, almost doubling the original claim.
  2. Instead of the lower insurance costs small businesses were promised, the non-partisan Congressional Budget Office expects costs for small group and individual insurance purchasers to rise faster now than without Obamacare. And according to the Galen Institute, Obamacare’s early mandates contributed to employer costs rising three times faster last year than they did the year before.

  3. There are at least two parts of Obamacare that are causing small businesses to restrict growth plans and rethink compensation models and employment structure in anticipation of these provisions.
    • The employer mandate requires small businesses with more than 49 employees to provide “government-approved” health insurance or face a $2000 fine per employee, after the first 30. The employer mandate does not apply to part-time employees.
    • Obamacare does include tax credits for employers with fewer than 50 employees, but as the number of full-time employees and average compensation increases, the credits decrease. These provisions seem to be at cross-purposes with much needed jobs and income growth. Also, even if the individual mandate currently being considered by the Supreme Court is struck down, the employer mandate and tax credit restrictions would still apply.

  4. We wanted to know how small business owners feel about Obamacare, so in our online poll recently, we asked this question with three possible answers: “On the 2nd anniversary of Obamacare, where do you stand on this law?” Twelve percent of respondents chose, “I like it and think it will be good for America,” while those who were “Undecided,” represented 10% of our sample. But the rest, 78%, said “I don’t like it and think it should be repealed.”

Write this on a rock… Obamacare is contributing to the economic uncertainty that small business owners are feeling.

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On my radio program, The Small Business Advocate Show, I’ve talked extensively with Grace-Marie Turner, President of the Galen Institute, co-author of Why Obamacare is Wrong for America and staunch advocate of market-based healthcare solutions, about the real cost - in dollars and liberties - of Obamacare.

Click here to listen or download our conversations.

Check out more great SBA content HERE!

Watch Jim’s videos HERE!

Take this week’s poll HERE!

Small Business Advocate Poll: Where do you stand in regard to ObamaCare?

The Question:
On the 2nd anniversary of the Patients Protection and Affordability Act (ObamaCare),
where do you stand on this law?

12% - I like it and think it will be good for America.

78% - I don’t like it and think it should be repealed.

10% - Undecided

Commentary:
In an ironic coincidence you can’t make up, during the week of the second birthday of Obamacare, the Supreme Court heard more than six hours of arguments - for and against - as it considers challenges to the constitutionality of ObamaCare.

During this momentous week we wanted to know the attitude of small businesses - Main Street’s court - on Obamacare, so we asked our audience this question: “On the 2nd anniversary of the Patients Protection and Affordability Act (ObamaCare), where do you stand on this law?”

A little more than one-in-ten of respondents to our unscientific, online poll said, “I like it and think it will be good for America.” Those who said, “I don’t like it and think it should be repealed,” came in at a resounding 78%. And those who were “Undecided,” represented 10% of our sample.

We will find out in June if SCOTUS agrees with small businesses.

Check out more great SBA content HERE!

Take this week’s poll HERE!

Health care reform ideas that work for small business

There seems to be no stopping the government’s plan to begin the incremental takeover and ultimately control of America’s health care system. The most likely bill seems to be the one being written by Senator Max Baucus, (D-Montana), Chairman of the Senate Finance Committee, which would result in a sweeping overhaul of an industry that is one-sixth of the U.S. economy.

But instead of health care reform for its own sake, meaning that the issues that need fixing are addressed and logical adjustments are put in place, what we now have is health care reform for the sake of politics. If you think this is an overstatement, consider this: Currently over 550 amendments have been proposed to the Baucus bill. This ridiculous number of amendments, plus the fact that there is an arbitrary push to get a bill signed into law this year, is proof that this effort is all about politics and has very little to do with quality reform.

America has a filet mignon health care system that is not perfect and could use some fixing. But please explain why we would let this sausage factory we call Congress get control of a $2.5 trillion industry that, unlike any other industry, touches the most intimate aspects of the lives of every American. Why would we allow the same people who have managed Social Security, Medicare, Medicaid and the U.S. Postal Service into de facto bankruptcy to take over our health care system? And shouldn’t the horror we’ve seen with the mismanagement of VA hospitals give us great pause before we hand over our health care system to the government?

You would be correct to point out that the current proposals aren’t about an immediate takeover of the U.S. health care system. But anyone who thinks this isn’t the ultimate plan is living in a fantasy world. Once this bill is passed, the socialized medicine, single-payer system camel will have its nose under the free-market economy tent and it will just be a matter of time before this stinking dromedary will be wreaking havoc in America’s living rooms.

There are many ways the marketplace and government can work together to accomplish true reform, not the least of which would be tort reform, but here is just one:

Take away the employer deduction for employee health insurance expense and replace it with tax credits given to every American to shop around and buy their own health care insurance, the same way we shop for, and buy, everything else. If you, or your employer, want you to have a better plan, you can pay for that with after-tax dollars. With this plan, a federal law would also be needed to allow individuals to buy insurance across state lines, thus avoiding the various state insurance mandates

This simple reform would solve many problems, including but not limited to:
- create a more efficient insurance system
- create more competition – real market-based competition
- create more innovation, both in insurance and health care products and services
- create more marketplace jobs and fewer government jobs
- eliminate an employee being held hostage to a job because of insurance benefits
- eliminate the “pre-existing medical condition” problem
- Americans would become health care consumers, instead of just co-paying patients.

All of these elements would be good for small businesses, but especially because they would help level the benefits playing field in competing for workers.

Perhaps the greatest flaw of this health care reform idea is that it’s simple and would actually work in real life – a concept seemingly foreign to members of the political class.

As always, looking forward to your comments.