Obamacare: A Prescription
for Job Loss
By Mark Davis, MD
Democracy took a wrong
turn when the Patient Protection and Affordability Care Act (PPACA), commonly
known as Obamacare, came online in March of 2010. Few had read this voluminous document prior
to its passage, even fewer understood the pain it would inflict soon
after. By virtue of this law’s intricate
algorithms failure could be its only final outcome. As time moved on from its
passage into law a new array of taxes and levies were brought to bear on
businesses, insurance companies and those affected by the changes in both.
Companies with fifty or more employees were mandated to provide health
insurance to their employees. Through a convoluted formula certain levels of health
coverage were required to be met or the wrath of the IRS would soon be felt.
More revealing businesses would be able to circumvent this mandate if hours of
their workers were reduced below thirty per week. With the swipe of a pen the
private sector had their balance sheets usurped by government entities under
the guise of a health care umbrella.
In preparation for the
oncoming fiscal tidal wave a multiplicity of businesses began paring back there
non-salaried workers hours to less than 30. This action would place these
employees under the threshold requirement to provide health coverage. Regal
Cinemas sent a memo to its staff, early in 2013, with a blatant message noting
their change in hours were directly due to the health insurance provisions of
Obamacare. Many managers resigned others simply worked with the schedule
provided by Regal Corporate. From Pizza
chains to wholesale outlets innumerable employees were experiencing the
consequences from a legislation that never should have been enacted into law.
Contrary to the positive face government officials place on PPACA, its
insidious affects are making their way throughout the business community.
Employees in minimum wage jobs will be especially hard hit. How many people
will ultimately lose their jobs has been sketched out by another bureaucracy.
Congressional Budget
Office (CBO) was established as a federal agency within the jurisdiction of the
legislative branch of government. Its noble mission statement required this
administrative entity to be objective, nonpartisan and timely with its economic
forecasts. Recent history displays these goals have come into question
concerning Obamacare. Their projections indicate over 2 million full time job equivalents will be lost in the next few
years as a direct result of the progressives overreach into health care.
Transparency is not this agency’s strong point. Calculation of these job losses
may not take into consideration the gamut of new taxes forced on the business
world. Welch Allyn, a company that manufactures medical diagnostic equipment,
announced in the latter part of 2012 it would lay-off 10% of its workforce over
a three year period, in response to the pending medical device tax it would
confront in the near future. Dana Holding Corporation, Stryker, Boston
Scientific, Metronics and many others cite this same tax for the expansive
layoffs they plan. Could the CBO be underestimating the workforce reductions as
they underestimated the costs of PPACA?
Omens suggest the CBO’s predictions are baseless and more bad news is
coming.
Democrat leaders in both
houses of Congress continue to spin Obamacare as America’s destiny, the numbers
reveal the antithesis. Job creation has
been very sluggish over the last several years as the tentacles of this
leviathan intersperse throughout the business community. Unable to plan for the
future, many companies are sitting on the sidelines waiting for the next twist
or turn in a law which has obstructed their ability to expand. Unemployment
statistics do not reflect the tens of millions who have curtailed searching for
work. Reports from the franchise
industry provide an indication of the problems created by this legislation.
With the imposition of penalties on businesses not offering health insurance
and or appropriate coverage, as defined by Obamacare, many medium to large concerns
are not hiring or worse they are moving ahead with layoffs. The hospitality,
restaurant and leisure industries, especially those who employ more than fifty
people, see bleak futures ahead. They require many hands to be successful, yet
work on a very fine profit margin. A future full of red ink is the collective
realization of many who have read the proverbial writing on the wall which our
legislators refuse acknowledge.
Unions, once major
supporters of President Obama’s health fiasco, now feel exploited. Health
insurance premiums for their members have seen exponential increases. Promised subsidies
have not materialized. Worse coverage has changed to the detriment of millions
under union contracts. Low salaried workers could be forced off their plans
onto insurance exchanges providing less coverage than they have now or worse
lose their jobs. Union bosses have made their feelings clearly known to Obama
who so far has been mute to their complaints. Why? Because he no longer needs
their support, therefore he has thrown them under the literal bus as he has
done to the rest of the country.
Obamacare is a
prescription for job loss, no doubt. Constructed around a core of ideas to
control all segments of the economy, health care delivery was the least concern
of its architects. Enmeshed within its draconian structure are the ingredients
to tilt bottom lines towards red ink, potentially placing at risk millions of
jobs. Oblivious to these facts the President believes his legacy legislation is
the best thing since the invention of the wheel without recognizing the true
cost to the nation, its soul.
Mark Davis MD is an
author, journalist and media consultant. Dr. Davis is President of Healthnets
Review Services and Davis Book Reviews. His latest book is Obamacare: Dead on
Arrival, A Prescription for Disaster. For consults, interviews and seminars
please contact him at the following email: platomd@gmail.com or his company www.healthnetsreviewservices.com
