The real pain coming from the implementation, if you can call it that, of Obamacare is just starting to ripple through the economy.
I went to the dermatologist yesterday and the doctor was telling me how he has been bombarded with paperwork and can’t treat nearly as many patients as he had in the pre-Obamacare environment. He said it takes him longer to get paid and costs him more in labor to keep up with all that he needs to do.
I own an employment agency and search firm and I have seen a DRASTIC change in the number of companies that are offering medical benefits and even what kinds of benefits are being offered. In fact, my own insurance, which used to have no deductible and no co-pay, now has a $6,000 deductible and a $45 co-pay for virtually everything… Why I asked? Because the added costs that have been thrown on to them by the government via Obamacare. If you want me to cry a river of crocodile tears for the insurance companies and how much money they make, you’re not even going to get that from me, but they aren’t going to take the hit…all they did…which Conservatives and most people who ever took a business course in High School, all said was that costs were just going to be passed along to the consumer…you and me.
But what inspired this piece this afternoon was something I’ve been espousing for quite some time and now others are talking about it too, is the lie that was spread that this would NOT effect hiring practices.
In an article released by the Fairfield County Business Journal, “Job Numbers Obscure Some Economic Realities,” they confirmed what I’ve been saying and that’s that companies are avoiding the benefits burden by not hiring people full time anymore. Then governments are hiding the disaster that it’s wrecking upon working people by counting part-time workers as fully employed. Joseph Carbone, president and CEO of, The Workplace, gets it.
“About 40% of jobs created are part time because companies don’t want to hire full-time.” He goes on to add, “A lot of companies are turning to staffing agencies and part time employees to avoid the new regulations with the Affordable Care Act and to avoid the risks and liabilities associated with becoming a company with more than 50 employees.”
One client of mine here at Crossroads Consulting, LLC (CrossroadsConsulting.com) had 75 employees and he laid off 26 of them to get beneath the 50 employee criteria. When I asked him how much of a hit his company would take, he told me, “Not nearly as much as having them on board would and the costs I’d have to pay to keep them. I’d rather earn a bit less without that burden than make more and pay out more. The numbers made more sense to do what we did. It was less of an overall impact on my business.
Major employers across the nation are in agreement with people like Donald Trump, who tweeted out Tuesday that the new incoming Legislature needed to immediately defund Obamacare in order to give business a chance to get going and bring people back on.
In a store recently I saw a T-Shirt with a saying so appropriate to this story. It read, “The Problem With A Socialistic Government Is That Eventually You Run Out Of Other People’s Money!”
Believe it or not, there are still companies hiring. Here at Crossroads Consulting, we’re working hard to find the best opportunities for people to get ahead…or in some cases, just keep their heads above water. Visit our website at CrossroadsConsulting.com or send us your resume in Word format to firstname.lastname@example.org.