The New York Times is running a profile on a local bakery outside of San Diego. The bakery has 95 employees and about to run headlong into Obamacare’s employer mandate to provide health insurance. The impact is going to be devastating.
from NYT (emphasis mine):
The company is one of thousands of small businesses that employ more than 50 full-time employees and thus will be required to offer health insurance to their workers — or pay into a government fund — beginning Jan. 1. Rachel Shein and Steve Pilarski, the married owners of the bakery, which employs 95 people, estimate this could cost their business up to $108,000, and they are weighing their options as the date approaches. “Our revenues are about $8 million, but the food business is a low-margin industry so cutting $108,000 out of our profits, which are just over $200,000, is a big deal,” said Ms. Shein, who is the chief executive. They are evaluating different ways to comply with the new law and finance the expense.
More than half of the company’s already low profit is gone in an instant. The owners are now having to weigh the options of raising their prices to pay for the insurance (or the penalty) and/or letting go of nearly half of their employees in order to fall under the 50-employee cutoff line.
This is Obamacare in action. It kills jobs. It makes everything more expensive. It raises insurance premiums. All that, and it still leaves millions of people without health insurance.
Obamacare must be repealed, or it will drive our economy into the ground.