Sunday, July 26, 2009
Musings (more of a relay) on new Healthcare Bill
So, even today, no one really knows what the new Healthcare Bill (if it passes) will mean.
The only thing people really seem to understand is that the system should be improved;
the question is how.
well, that being said, and since I speak to dozens and dozens of small business owners every week, I thought it would be intersting to put their opinion on the web. [for those that are wondering why I'm talking about healthcare every day, I work for a consulting firm to small & medium sized business, it comes up a lot)
The overwhelming concensus among small business owners that I speak to is that they will....
wait for it......
eliminate full time employees from their companies.
Now, there are exceptions. Many small business owners have said they will keep (most) family and (a few) their most essential employees on full time. That will be interesting, today you are a full time employee, tomorrow you have two part time jobs and actually spend more money on benefits, so now you work more hours at two jobs and don't have more money leftover to show for it.
The small business owners in the service industries (trades, contractors, and even many white collar services like architects, lawyers, etc.) said they will transition to 1099 employees whenever possible. This already exists in brokerages & agencies; flooring & trucking, to name a few. How many employees that say "yes" to benefits from the employer will chose "no" on their own. These are the "willfully uninsured" we hear about on the news, and in this system the numbers may swell.
Seems like the new bill, if it mandates employeer payments, will actually have the opposite effect - essentially driving millions of employees into part-time or independent contractor status where they will need to pay full price for their own insurance. Now won't that be an interesting case of unintented consequences.
I must agree, changes should be made. But don't forget:
Change is Easy; Improvement is Something Different.
The only thing people really seem to understand is that the system should be improved;
the question is how.
well, that being said, and since I speak to dozens and dozens of small business owners every week, I thought it would be intersting to put their opinion on the web. [for those that are wondering why I'm talking about healthcare every day, I work for a consulting firm to small & medium sized business, it comes up a lot)
The overwhelming concensus among small business owners that I speak to is that they will....
wait for it......
eliminate full time employees from their companies.
Now, there are exceptions. Many small business owners have said they will keep (most) family and (a few) their most essential employees on full time. That will be interesting, today you are a full time employee, tomorrow you have two part time jobs and actually spend more money on benefits, so now you work more hours at two jobs and don't have more money leftover to show for it.
The small business owners in the service industries (trades, contractors, and even many white collar services like architects, lawyers, etc.) said they will transition to 1099 employees whenever possible. This already exists in brokerages & agencies; flooring & trucking, to name a few. How many employees that say "yes" to benefits from the employer will chose "no" on their own. These are the "willfully uninsured" we hear about on the news, and in this system the numbers may swell.
Seems like the new bill, if it mandates employeer payments, will actually have the opposite effect - essentially driving millions of employees into part-time or independent contractor status where they will need to pay full price for their own insurance. Now won't that be an interesting case of unintented consequences.
I must agree, changes should be made. But don't forget:
Change is Easy; Improvement is Something Different.
