Debbie and
Larry Underkoffler, opened a boutique staffing agency in the middle
of the Obama recession and have always taken good care of their employees, but
thanks to Obamacare, they are forced into throwing them to the
wolves. They have 400 temporary workers and want to add another 200
this year, but buying them all an Obamacare policy is too expensive and they
have decided to pay the $2,000 apiece fine for not providing coverage.
Although they only have 18 fulltime employees, under
Obamacare rules, temporaries who work over 30 hours a week are eligible for
coverage. That would take them to about 200 employees and put them over
the top and into mandatory coverage.
The Onderkofflers worked hard to build up their
business. “I would bake sourdough bread, and I made homemade strawberry jam, and
deliver it to my prospects. I would also deliver homemade cookies.”
And their 18 full time employees get generous healthcare benefits, which they
will now lose since Obamacare does not allow a company to have different
policies between full time workers and part timers. It looks like we will have to just pay the
penalties.”
By paying the penalties, it will cost their business
$400,000 a year which greatly diminish their profit margin, but not as badly as
the 2 million it would cost to insure them. Some call this an unintended
consequence of the law, but I submit that this is exactly what the law was
designed to do and once everyone is in the government exchange, they will
convert it to a single payer system, like the ones that work so well in Canada
and Great Britain.With a year’s delay in the employer mandate, they are hoping
for some relief with the current rules but neither is optimistic.
“I haven’t seen any thus
far. And certainly with the situation in Washington right now, they seem to be
kicking the can down the road.”Source: Redstatements.com, October 20, 2013 by Steven Ahle
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