Franchise owners come to Washington to plead for ObamaCare relief

Franchise restaurant owners have come to Washington seeking a change to ObamaCare that they say could prevent them from having to cut their employees’ hours. The healthcare law requires large employers to provide insurance to employees who work at least 30 hours per week.

Franchise owners say the employer mandate threatens to erase their narrow profit margins and are telling lawmakers they need to overhaul the law before it’s too late.

“Employees won’t have the hours they need, and they won’t get employer-sponsored healthcare, either,” said Steve Caldeira, president and CEO of the International Franchise Association (IFA).

“[Franchisees] are dealing with high commodity costs, high energy prices, higher taxes from the ‘fiscal-cliff’ deal, and now they are trying to work through ObamaCare,” he said.

More than 300 members of the franchise association are making the rounds on Capitol Hill to lobby for the ObamaCare changes. Monday’s visitors included IFA members from Mr. Rooter, McDonald’s and Dunkin Donuts. Read more >>

Business Owners May Face $100-Per-Day Penalty Under ObamaCare

Small business owners who thought they were off the hook for ObamaCare regulations until 2015 may be in for an expensive wake-up call next month.

Beginning Oct. 1, any business with at least one employee and $500,000 in annual revenue must notify all employees by letter about the Affordable Care Act’s health-care exchanges, or face up to a $100-per-day fine.

The requirement applies to any business regulated under the Fair Labor Standards Act, regardless of size. Going forward, letters are to be distributed to any new hires within 14 days of their starting date, according to the Department of Labor.

Earlier this summer, the employer mandate, which states that every business with at least 50 or more full-time employees must offer workers acceptable coverage or face a $2,000 penalty per-worker, per-year, was pushed back until 2015.

But the Oct. 1 employee-notification deadline stands. Keith McMurdy, partner at FOX Rothschild LLP, says the $100 per-day fine has been “unfortunately overlooked” by many small businesses, and the dollar amount on the penalty comes from the general per-day penalty under the ACA. Read more >>

More than 250 employers have cut work hours, jobs to avoid ObamaCare

More than 250 employers have cut work hours, jobs or taken other steps to avoid ObamaCare costs, according to a new IBD analysis.

Mind the data have been the refrain from the White House as it downplays anecdotal reports of employers limiting workers to fewer than 30 hours per week.

But the anecdotes are piling high enough that they now constitute a body of data that can help gauge the impact of the Affordable Care Act's employer mandate.

IBD is introducing ObamaCare Employer Mandate: A List Of Cuts To Work Hours, Jobs — a compilation of employers who have opted to restrict work hours to limit new liability for employee health coverage.

As of Sept. 3, this list has reached 258 — including more than 200 public-sector employers.
Almost all of those employers have cut the hours of part-time workers to below 30 per week — the point at which ObamaCare's insurance mandate kicks in.

A few have cut payrolls to steer clear of ObamaCare's 50 full-time-equivalent-worker definition of a large employer subject to employer fines. A few others have reduced staff while contracting with employment services firms to limit their ObamaCare exposure. Read more >>

Obamacare forces most Charlottesville, Va., firms to go part-time

An influential Charlottesville, Va., money management team claims that Obamacare has forced many firms in Thomas Jefferson's hometown to switch to part-time workers, and that one manager was told he'd be fired if he hired a 50th full-time worker, the number that triggers the costly health care system.

"Economic self-defense has many firms forcing their employees to work less than 30 hours a week regardless of their preference or availability. This trend seems to be universal even here in Charlottesville," David John Marotta and Megan Russell of Marotta Wealth Management said in an online memo to investors. The firm handles many Charlottesville investors.

They added: "We hesitate to name all the businesses in town that are cutting employee hours below 30. Even though the list includes almost all major franchises, most firms have been smart enough to keep the changes as quiet as possible." The reason: "The backlash and boycotts have been harsh and vitriolic from liberals."

Nonetheless, firms have been just as tough on managers in Charlottesville, ordering those that run smaller companies to keep hours and full-time workers below the Obamacare base level of 50. Going over 50 means firms will either have to start offering health insurance or pay a significant fine. Read more >>

UPS to drop 15,000 spouses from insurance, cites Obamacare

United Parcel Service Inc. plans to remove thousands of spouses from its medical plan because they are eligible for coverage elsewhere. The Atlanta-based logistics company points to the Affordable Care Act, or Obamacare, as a big reason for the decision, reports Kaiser Health News.

The decision comes as many analysts are downplaying the Affordable Care Act's effect on companies such as UPS, noting that the move reflects a long-term trend of shrinking corporate medical benefits, Kaiser Health News reports. But UPS repeatedly cites Obamacare to explain the decision, adding fuel to the debate over whether it erodes traditional employer coverage, Kaiser says.

Rising medical costs, “combined with the costs associated with the Affordable Care Act, have made it increasingly difficult to continue providing the same level of health care benefits to our employees at an affordable cost,” UPS said in a memo to employees. Read more >>

Uninsured next year? Here's your Obamacare penalty

NEW YORK (CNNMoney)
Thinking of ignoring the Obamacare mandate to get health insurance next year? It could cost you. To try to ensure that people sign up for coverage, the Affordable Care Act carries complex penalties for those who remain uninsured that could cost them hundreds, or even thousands of dollars. Some 6 million people could be hit with these fines in 2016, forking $7 billion over to the federal government, according to the Congressional Buget Offfice.

Here's how the penalties will work: Uninsured adults will either pay a flat fee for themselves and their children or pay a share of their income, whichever is greater. The penalty is pro-rated if people have coverage for part of the year, and they won't be liable if they lack coverage for less than a three-month period during the year.

The penalties start relatively small, but ramp up within a few years. But there is a limit. They cannot exceed the national average premium for bronze coverage -- the cheapest plan tier -- in the state-based exchanges.

For 2014, the flat fee is $95 per adult and $47.50 per child, up to $285 per family. Or the penalty could be 1% of family income, if that results in a larger fine. (Income is defined as total income above the filing threshold, which is $10,000 for an individual and $20,000 for a family in 2013.)

So a person making $50,000 would be subject to a $400 penalty, while a couple earning that amount would each pay $300. Read more >>

Cost of health care to rise 72% in Indiana

Get ready to shell out more money for individual health insurance under Obamacare ... in some states, that is.

While many residents in New York and California may see sizable decreases in their premiums, Americans in many places could face significant increases if they buy insurance through state-based exchanges next year.

That's because these people live in states where insurers were allowed to sell bare-bones plans and exclude the sick, which has kept costs down. Under Obamacare, insurers must offer a package of essential benefits -- including maternity, mental health and medications -- and must cover all who apply. But more comprehensive coverage may lead to more expensive insurance plans.

Under Obamacare, all Americans must have insurance coverage starting in 2014 or face penalties of $95 or 1% of family income, whichever is greater. Enrollment in the exchanges begins October 1, with coverage kicking in in January. Plans will come in four tiers, ranging from bronze to platinum. Read more >>

Taxpayers to foot bill for congressional health care

The White House has approved a deal that will exempt members of Congress and their staff from some of the provisions of the Affordable Care Act, Politico reported late Thursday.

Under the law, popularly referred to as Obamacare, lawmakers and their aides were required to source health insurance "created" by the law or offered through one of its exchanges, and without the subsidies they currently enjoy, the members of Congress would have faced thousands of dollars in additional premium payments each year, the report said.

However, the Office of Personnel Management now plans to rule that the government can continue to make a contribution to the health-care premiums of the lawmakers and their staff, it said, citing unnamed congressional sources and a White House official. Read more >>

74% of small businesses will fire workers, cut hours under Obamacare

Despite the administration's controversial decision to delay forcing companies to join Obamacare for a year, three-quarters of small businesses are still making plans to duck the costly law by firing workers, reducing hours of full-time staff, or shift many to part-time, according to a sobering survey released by the U.S. Chamber of Commerce.

"Small businesses expect the requirement to negatively impact their employees. Twenty-seven percent say they will cut hours to reduce full time employees, 24 percent will reduce hiring, and 23 percent plan to replace full time employees with part-time workers to avoid triggering the mandate," said the Chamber business survey provided to Secrets.

Under Obamacare, just 30 hours — not the nationally recognized 40 hours — is considered full-time. Companies with 50 full-time workers or more are required to provide health care, or pay a fine.

The administration recently decided to wait a year before businesses had to comply, but many are trying to get ready anyway. The president did not delay the mandate that Americans must have health insurance or pay a fine, however. Read more >>

ObamaCare's Health-Insurance Sticker Shock

Health-insurance premiums have been rising—and consumers will experience another series of price shocks later this year when some see their premiums skyrocket thanks to the Affordable Care Act, aka ObamaCare.

The reason: The congressional Democrats who crafted the legislation ignored virtually every actuarial principle governing rational insurance pricing. Premiums will soon reflect that disregard—indeed, premiums are already reflecting it.

Central to ObamaCare are requirements that health insurers (1) accept everyone who applies (guaranteed issue), (2) cannot charge more based on serious medical conditions (modified community rating), and (3) include numerous coverage mandates that force insurance to pay for many often uncovered medical conditions.

Guaranteed issue incentivizes people to forgo buying a policy until they get sick and need coverage (and then drop the policy after they get well). While ObamaCare imposes a financial penalty—or is it a tax?—to discourage people from gaming the system, it is too low to be a real disincentive. The result will be insurance pools that are smaller and sicker, and therefore more expensive. Read more >>

Obamacare Could Double Health Care Premiums: Aetna CEO

To provide all Americans with health insurance, premiums will have to rise to pay for it, Aetna CEO Mark Bertolini told CNBC's "Closing Bell" on Wednesday.

"If we're going to insure all Americans, which is a worthy and appropriate cause, then somebody has to pay for it," Bertolini said of the expected premium increases under Obamacare.

Bertolini said that insurance premiums could double in some places just on the basis of what types of policies people buy today.

He also said that when Obamacare is fully implemented, it won't start the way people had hoped and it won't be cheaper.

Over the longer run, the key to bringing down premiums will be controlling health care costs, he added. "It'll be fits and starts, but we'll get there," Bertolini said.

Higher premiums also will not necessarily mean higher margins for Aetna. "The people coming into the system will be sicker because they have not used services," Bertolini said. "So in the initial part of this program it will cost more to take care of people because they have been going without health care for so long." Read more >>

Walmart plans to deny health insurance to employees working fewer than 30 hours/wk

Walmart, the nation’s largest private employer, plans to begin denying health insurance to newly hired employees who work fewer than 30 hours a week, according to a copy of the company’s policy obtained by The Huffington Post. …

Walmart declined to disclose how many of its roughly 1.4 million U.S. workers are vulnerable to losing medical insurance under its new policy. …

Labor and health care experts portrayed Walmart’s decision to exclude workers from its medical plans as an attempt to limit costs while taking advantage of the national health care reform known as Obamacare. Among the key features of Obamacare is an expansion of Medicaid, the taxpayer-financed health insurance program for poor people. Many of the Walmart workers who might be dropped from the company’s health care plans earn so little that they would qualify for the expanded Medicaid program, these experts said.

By making the fine for not providing health care cheaper than providing health care, this was always the plan: to encourage employers to send us to the government.

Remember how Obama's big ObamaCare sell was, "You get to keep the health insurance you have"?

It was all a lie, a hustle, a con, a ruse… Read more >>

Obamacare, the Great Swindle

Now that Obamacare has been ruled a tax by the U.S. Supreme Court, reality is starting to sink in for all those who emotionally supported it. Promoted as a way to provide either free health care or low-cost health care to the masses, the sobering reality is that under Obamacare, health insurance prices keep rising, not falling.

That's no surprise, of course, since the Obamacare legislation was practically written by the health insurance companies, and they sure didn't put their weight behind a sweeping new law that would earn them less profit. In an era when the so-called "99%" are sick and tired of being exploited by the one percent who control everything, they just handed their medical futures over to precisely the one percent who skillfully monopolize the conventional health care system! Obamacare is, at every level, a huge victory for the one percent.

By the year 2016, the Obamacare "penalty" tax will reach roughly $2,000 per year for a two-person household. According to Stephen Moore of the Wall Street Journal, 75% of the financial burden of Obamacare's new taxes will fall onto Americans making less than $120,000 a year. Read more >>