Wednesday, January 18, 2017

Report: Obamacare cost small businesses 300,000 jobs - By Rick Moran

Here's are some Obamacare statistics that have not been well publicized - for obvious reasons. A study done by the center right American Action Forum found that 300,000 jobs have been lost due to rising insurance premiums and Obamacare regulations, costing workers $19 billion in lost wages.
The report also found that 10,000 small businesses were forced to close their doors because of the ACA.
“Research from the American Action Forum (AAF) finds regulations from the Affordable Care Act (ACA) are driving up health care premiums and are costing small business employees at least $19 billion in lost wages annually,” the report said. “These figures varied by state, but in 2015 the ACA cost year-round workers $2,095, $2,134, and $2,260 in Ohio, New York, and North Dakota, respectively.”
“Premium increases, a prospect regulators predicted when issuing the first ACA regulations, also significantly diminished the number of business establishments and jobs nationwide,” the report said. “Across the country, small businesses (20-99 workers) lost 295,030 jobs, 10,130 business establishments, and $4.7 billion in total wage earnings. Florida lost 17,950 jobs; Ohio lost 19,000; Pennsylvania lost 15,680; and Texas lost 28,010 jobs due to higher sensitivity to rising health care premiums and the ACA.”
Ben Gitis and Sam Batkins, the authors of the report, used data from the U.S. Census Bureau, the Medical Expenditure Panel Survey, and the Bureau of Labor Statistics for their findings.
The report used different data sets for small businesses with less than 50 employees, which were exempt from the law’s employer mandate. However, this group also suffered job losses and lower wages after Obamacare went into effect. The paper compared data from up to six years before the law was passed to show a clearer picture of Obamacare’s impact on small business.
Before Obamacare became law, workers still saw an increase in their average weekly pay when health insurance premiums went up.
“After the ACA became law, however, a one percent increase in total premiums was associated with a 0.012 percent decrease in average weekly pay,” the report said.
The numbers add up to roughly $3.9 billion in lost wages for small businesses with between 20 and 49 workers, which account for 20 million workers in the United States. The average worker for those businesses has lost $1,202 in annual pay.
The authors found that Obamacare has cost the economy a net $51 billion dollars and regulations added an astonishing 172 million hours in paperwork for American businesses.
Again, this had been widely predicted prior to the passage of the Affordable Care Act. And it wasn't just Republicans who predicted catastrophe. In 2014, tne Congressional Budget Office forsaw a job loss equivalent  to 2 million. The myth that Obamacare would actually create jobs and have little impact on small business has been irrevocably shattered.
Obama will turn out to be the worst small business president in history, overseeing a government that made it much harder for small businesses to get going while adding thousands of hours per business per year in paperwork burdens. 
This is a president that talked a good game when it came to creating good jobs but ultimately failed to deliver.