Many Texas Firms Say Obamacare Will ‘Raise Costs a Lot’ and Reduce Employment

Obamacare may be over as a
campaign issue—or
so declareth its hopeful supporters—but it’s still very much a
cold sweat-inducer among business owners who have to shoulder its
costs and abide by its requirements. As part of its latest monthly
survey of service sector businesses, the Federal Reserve Bank of
Dallas
included specific questions about the impact of the Affordable
Care Act. The responses from 191 executives were not so encouraging
for those hoping that the health care law won’t be a kick in the
groin to the economy.

Asked, “How would you say the Affordable Care Act (ACA) has
affected your firm’s health care costs…?” 82.1 percent of
respondents estimate increased costs for 2014; 90.9 percent
estimate increased costs for 2015. Only 0.6 percent estimated lower
costs for either year.

Of a subset of retail business executives, 86.7 percent
estimated increased costs for 2014; 92.3 percent said the same of
2015.

But those are just fat-cat executives. Who cares about them?
What does that mean for the working folks benefiting from the
law?

Well…20.8 percent of those fat cats say the number of people
they employ will be lower as a result of the Affordable Care Act
(2.7 percent say it will be higher). And 22.4 percent say
they’ll use a higher proportion of cost-reducing part-time,
contract, or temporary workers (7.1 percent will use fewer). Some
businesses are reducing wages and benefits, too—certainly more than
are increasing them.

Maybe Obamacare isn’t a campaign issue. But in the rest
of the world, it still plays a role.