Video: Ohio small businesses facing 20% higher health-insurance costs thanks to ObamaCare

posted at 11:21 am on September 27, 2013 by Ed Morrissey

HHS just got done telling us that the new rates for ObamaCare exchange insurance plans came in “lower than projected,”  which doesn’t mean “lower than last year” — and compares them to projections for 2016, not 2014. In fact, costs are skyrocketing, and not just in the exchanges, either.  Ohio’s WDTN asks two local businesses in the manufacturing sector how the advent of the ObamaCare mandates have impacted their budgets, and one wonders whether the “affordable” in the Affordable Care Act is meant as irony (via Daniel Halper at the Weekly Standard):

“Well the biggest thing I’ve learned about the Affordable Care Act is it’s certainly not affordable,” said Steve Staub, owner of Staub Manufacturing who make laser cut parts for a variety of industries from food vendors to the auto industry.

Staub says due to the Affordable Care Act, he may have to make precision cuts to the health plan he provides for his 25 employees.

He said he currently pays 80 percent of his employees health care costs but his rates have already shot-up nearly 20 percent., “When I called the company to ask why they said it’s strictly to get ready for Obamacare,” Staub replied.

Dave Freimuth of JBK Manufacturing, an aerospace contractor on Troy Street is in a similar position with his small business that employs 38 people.

His company provides nearly 90 percent of their employees health care costs. He said he’s glad the Affordable Care Act will help the uninsured, but at what cost?

“Anytime the government gets involved the costs go up,” Freimuth added, “Some companies in the industry are dropping health care plans all together and giving their employees a pay-off, letting them fend for themselves in the new health care market place.”

Both feel increased health care costs will have to be passed along to their clients, which they fear may make American companies less competitive globally.

Our tax system already makes that a problem for American manufacturing, and the additional cost load won’t help matters.  This points out a problem that the media has overlooked, even those who have reported on the drastic increases in premium prices next week.  The prices aren’t just going up in the exchanges, but across the board, as ObamaCare mandates and plan requirements force insurers to take on significantly more risk.

That’s a remarkable development, even if few are actually remarking on it except in local markets like Dayton, Ohio.  The Obama administration and Obama himself repeatedly promised that premiums would decline significantly after the ACA took effect, which is why I called the HHS announcement an Orwellian example of bait-and-switch propaganda:

Note well that the HHS release doesn’t claim to have lowered premiums.  Barack Obama promised during his 2008 presidential campaign and his push for the ACA that his reforms would lower premiums while “bending the cost curve downward” across the industry – by as much as $2500 a year per family.  …

What actually does happen to premium costs next week? Bloomberg reported after the release that the average individual policy will cost $2,988 a year through its exchanges.  That is 37 percent higher than the average individual health-insurance plan in 2011 ($2,196), the first year in which coverage mandates began to take effect under Obamacare.  That’s hardly a downward bend in the cost curve, no matter what kind of apples-to-oranges comparison HHS uses to distract from that steep price hike.  …

If a retailer tried that with its advertising, the Federal Trade Commission would charge the chain with bait-and-switch fraud.

All of this was in service to insuring the 30 million estimated in the US to be uninsured, which will still be 30 million after ObamaCare rolls out.  Democrats are going to find this impossible to defend, which is why Daniel Henninger advocates a “let it burn” strategy in the Wall Street Journal:

As its Oct. 1 implementation date arrives, ObamaCare is the biggest bet that American liberalism has made in 80 years on its foundational beliefs. This thing called “ObamaCare” carries on its back all the justifications, hopes and dreams of the entitlement state. The chance is at hand to let its political underpinnings collapse, perhaps permanently.

If ObamaCare fails, or seriously falters, the entitlement state will suffer a historic loss of credibility with the American people. It will finally be vulnerable to challenge and fundamental change. But no mere congressional vote can achieve that. Only the American people can kill ObamaCare. …

Enacted with zero Republican votes, ObamaCare is the solely owned creation of the Democrats’ belief in their own limitless powers to fashion goodness out of legislated entitlements. Sometimes social experiments go wrong. In the end, the only one who supported Frankenstein was Dr. Frankenstein. The Democrats in 2014 should by all means be asked relentlessly to defend their monster.

Republicans and conservatives, instead of tilting at the defunding windmill, should be working now to present the American people with the policy ideas that will emerge inevitably when ObamaCare’s declines. The system of private insurance exchanges being adopted by the likes of Walgreens suggests a parallel alternative to ObamaCare may be happening already.

If Republicans feel they must “do something” now, they could get behind Sen. David Vitter’s measure to force Congress to enter the burning ObamaCare castle along with the rest of the American people. Come 2017, they can repeal the ruins.

The discrediting of the entitlement state begins next Tuesday. Let it happen.

And make sure to document its collapse along the way.


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This guy running this business is obviously a RACIST.

ToddPA on September 27, 2013 at 11:24 AM

The Swine in Chief exempted his “fat cat” buddies, though, while the hypocrite says this.

Schadenfreude on September 27, 2013 at 11:24 AM

H/t to Bishop, for focusing on this last night

“Once it’s working really well, I guarantee you, they will not call it Obamacare,” Obama told a crowd in Largo, Md. Thursday. “Here is a prediction for you. A few years from now, when people are using this to get coverage, everybody is feeling good about the choices they’ve got, there are going to be a whole bunch of folks that will say, yeah, yeah, I always thought this provision was excellent. I voted for that thing. You watch. It will not be called Obamacare.”

Schadenfreude on September 27, 2013 at 11:25 AM

The penalty % increases with income too, so it does get larger, but nowhere near what your premium would be. However, there is no provision in the law for IRS to collect the penalty. They are not empowered to attach assets or wages. It isn’t even clear if they are allowed to offset against a tax credit or refund.

This thing is a guaranteed flop that is going to hurt most people and benefit very few. The only people who will be better off will be those with serious pre-existing conditions who can buy insurance instead of sticking with Medicaid. Of course, the damage to the health care system in the long run would negate this advantage, even.

Let it crash and burn, as Henninger suggests. It’s the surest way to get rid of it altogther – and a bunch of Democrats with it.

Adjoran on September 26, 2013 at 11:52 PM

Internalize this, never forget. DO NOT comply. Set yourselves free.

Schadenfreude on September 27, 2013 at 11:26 AM

I read Henninger’s piece earlier and his argument is valid…L.I.B…

PatriotRider on September 27, 2013 at 11:27 AM

Someone voted for Obama and by extension Obamacare.
Mitt Romney said he would repeal it on Day 1.
Americans didn’t choose that option. The dog on the roof and his wife’s horse bothered them too much.
H.L. Mencken is laughing at us. It’s more than laughing. He’s mocking us.
And rightfully so.

vityas on September 27, 2013 at 11:30 AM

which will still be 30 million after ObamaCare rolls out

Not it won’t…everybody will be fully insured…guaranteed…per the MSM…

PatriotRider on September 27, 2013 at 11:30 AM

My wife and I sat down and went through our employers insurance plans/option last weekend.

I’ve never swore or been so angry in LONG time.

portlandon on September 27, 2013 at 11:32 AM

The Execrable Care Act

faraway on September 27, 2013 at 11:32 AM

“There is no evidence that my signature bill is doing any harm…”

Electrongod on September 27, 2013 at 11:36 AM

Suck it up dudes, you’re racist and you didn’t build your companies anyway.

Bishop on September 27, 2013 at 11:36 AM

I read Henninger’s piece earlier and his argument is valid…L.I.B…

PatriotRider on September 27, 2013 at 11:27 AM

Not only is it valid, but it is the simplest and most effective path open. It’s putting out the fire with gasoline.

EA_MAN on September 27, 2013 at 11:37 AM

Ohio put Obama over the top during the election.
Let them be the first to go over the falls!

LeftCoastRight on September 27, 2013 at 11:37 AM

ObamaCare is based on the theory that young people who were stupid enough to vote for Obama are also stupid enough to overpay for insurance they don’t need and won’t use.

It’s also based on the theory the rest of us won’t notice we’re being screwed in the @$$ so long as Obama is singing us a BS lullaby.

The jury is still out on both counts.

In the meantime, the situation may be resolved by the immense incompetence of the people who built this Frankenstein. The sewed together monstrosity is presently being lifted up to await the lightning strike that they think will bring it to life.

novaculus on September 27, 2013 at 12:24 AM

Schadenfreude on September 27, 2013 at 11:38 AM

I am sure that John Roberts, a small, small man, sitting at his ivory bench, feels no responsibility. He had his hand on the switch and chose the destruction of America.

GaltBlvnAtty on September 27, 2013 at 11:39 AM

My wife and I sat down and went through our employers insurance plans/option last weekend.

I’ve never swore or been so angry in LONG time.

portlandon on September 27, 2013 at 11:32 AM

Our HR rep sat talked to us this week and told us our rates would be going up by 23% this year, and what was going to be coming out of everyone’s paycheck. There are a lot of unhappy people at my office.

Honestly, these businesses should consider themselves lucky. They could be going up by 100% or 200% like I’ve seen in some horror stories.

Doomberg on September 27, 2013 at 11:40 AM

My small business policy went up 35% the past two years and is slated to go up at least another 25% next year.

However, HSA programs for small business have become more competitive. I believe that’s the way a lot of private plans will head, which is great, and the exact opposite of what Obama wants.

phillypolitics on September 27, 2013 at 11:41 AM

If Ds like obama’care’ so much, NO exemptions, none, from obama and his clan on down.

Schadenfreude on September 27, 2013 at 11:43 AM

It’s the SS ObamaCare and the entire ocean is an iceberg.

NotCoach on September 27, 2013 at 11:44 AM

Only 20%? This guy is getting off easy then. Many people I know are seeing rates go up by double or more, ours has already been jacked up, deductibles raised, and out of pocket raised. Thing is, this “defunding” ploy doesn’t get rid of the laws that are seriously screwing those of us who have insurance. The mandates driving up costs aren’t funded by government, they are funded by rate payers.

flyfishingdad on September 27, 2013 at 11:46 AM

Steve Staub, owner of Staub Manufacturing looks very unhappy, very agitated and not at all pleased. Wonder if he is an Øbama supporter?

ExpressoBold on September 27, 2013 at 11:49 AM

If ObamaCare fails, or seriously falters, the entitlement state will suffer a historic loss of credibility with the American people. It will finally be vulnerable to challenge and fundamental change. But no mere congressional vote can achieve that. Only the American people can kill ObamaCare. …

I hope so. But I’m doubtful. We’ll see how many LIVs the media/Democrats can convince that it’s the fault of evil corporations and insurance companies and the rich not paying their fair share or recalcitrant Republicans obstructing the law mandated utopia.

gwelf on September 27, 2013 at 11:50 AM

Obama administration officials speaking to reporters about the Obamacare clusterphuck:

http://www.youtube.com/watch?v=UmzsWxPLIOo

BuckeyeSam on September 27, 2013 at 11:51 AM

My wife and I sat down and went through our employers insurance plans/option last weekend.

I’ve never swore or been so angry in LONG time.

portlandon on September 27, 2013 at 11:32 AM

I’ll get this superb joy next month. Our CEO (a great guy) has already sent out the cryptic we’re-adjusting-to-ObamaCare-and-looking-at-options email.

gwelf on September 27, 2013 at 11:52 AM

Let it burn

cmsinaz on September 27, 2013 at 11:54 AM

brayam? livefreeandlie? Anyone?

Chuck Schick on September 27, 2013 at 11:54 AM

Ohio put Obama over the top during the election.
Let them be the first to go over the falls!

LeftCoastRight on September 27, 2013 at 11:37 AM

Thank 35 days of early voting ushered in by Dems and RINOs in the past, Obamaphones used to herd no-information voters to the polls, and idiotic “conservatives” who stayed home.

BuckeyeSam on September 27, 2013 at 11:55 AM

Just you wait….this is going to be great
-mika this am

cmsinaz on September 27, 2013 at 11:55 AM

Honestly, these businesses should consider themselves lucky. They could be going up by 100% or 200% like I’ve seen in some horror stories.

Doomberg on September 27, 2013 at 11:40 AM

We buy a private policy in NC. Just got the notice yesterday and the cost is now double.
This guys story is tame in comparison.

lynncgb on September 27, 2013 at 11:55 AM

brayam? livefreeandlie? Anyone?

Chuck Schick on September 27, 2013 at 11:54 AM

liveslaveanddie is still swooning over the awesome exchanges you may not have heard of that Hotair is refusing to talk about.

gwelf on September 27, 2013 at 11:56 AM

Obama himself repeatedly promised that premiums would decline significantly after the ACA took effect,

They did decline Ed.

They were projected to be X, but now they are Y, and while they are more expensive than your current Z, they are still below X!

Would a Peace Prize winner LIE to the people he is serving?

No.

No he wouldn’t

/

Gatsu on September 27, 2013 at 11:58 AM

Lets not forget that the left always makes huge promises and never delivers and it doesn’t hurt them.

Look at what Democrat politicians and policies have inflicted on the black community.

When Obama was elected we were going to end war, close Gitmo, the economy was going to roar back, civil liberties stripped away by the war criminal Bush would be restored, partisanship itself would melt away and Glorious Future awaited for according to our Unicorn Prince.

None of that happened. And Obama won in 2012.

gwelf on September 27, 2013 at 11:59 AM

All of this was in service to insuring the 30 million estimated in the US to be uninsured, which will still be 30 million after ObamaCare rolls out.

I haven’t heard a Dem defend Obamacare’s projected failure in this regard.

But then I haven’t seen anyone in the media press them repeatedly on this point. I hope the members of the liberal media get completely screwed by Obamacare.

BuckeyeSam on September 27, 2013 at 12:00 PM

My insurance for my family went up 300% a year and a half ago. My employer saw what was coming and made the move. I don’t blame him a bit. I blame all of the morons that voted for this a$$. I hope they choke on their own vomit.

VegasRick on September 27, 2013 at 12:00 PM

They did decline Ed.

They were projected to be X, but now they are Y, and while they are more expensive than your current Z, they are still below X!

Would a Peace Prize winner LIE to the people he is serving?

No.

No he wouldn’t

/

Gatsu on September 27, 2013 at 11:58 AM

Premiums were supposed to go down but those evil fat cats in corporations and insurance companies are too greedy.

Liberal promises of free lunches will only be possible if we push the private sector out of the market more and appropriate more control and ownership.

Single payer will finally deliver the promise!

/media

gwelf on September 27, 2013 at 12:01 PM

This is unexpected?

The communists are in charge. They have a history of not caring if the peasants die. In fact Stalin arranged it. Reality is coming.

TerryW on September 27, 2013 at 12:02 PM

This guy running this business is obviously a RACIST

Just look at his hair, practically a skinhead.

Nick_Angel on September 27, 2013 at 12:10 PM

Schadenfreude on September 27, 2013 at 11:26 AM

Just make sure to structure your tax withholdings or quarterly/monthly tax payments to pay to the penny what you owe and nothing more. Then there is no tax refund to attach.

chemman on September 27, 2013 at 12:10 PM

I forget, did Ohio’s electoral votes go to Obama? Yes?

Well, then.

F**k you with a big stick, buddy. We keep hearing that “elections have consequences.” With Obama you don’t get truth, but you sure as heck get consequences.

Bend over, my man, and feel the Choombama’s love.

PD Quig on September 27, 2013 at 12:14 PM

Mine nearly doubled last year and is set to nearly double again this year. And my FSA and HSA accounts have become more trouble than they are worth due to all the new restrictions and documentation requirements. Thanks, President 0bama!

stvnscott on September 27, 2013 at 12:16 PM

Wow, who could have seen this coming?

Chris of Rights on September 27, 2013 at 12:17 PM

Sorry, I misspelled Ohio. According to President Affirmative Action it’s spelled: Oiho

PD Quig on September 27, 2013 at 12:17 PM

The problem with this premise is that, in my opinion, the failure of Obamacare was planned all along by its authors. Its failure paves the way for single payer. The intent of Obamacare is simply to cause the failure of the insurance industry. At that point the federal government will be forced to step in and “rescue” the industry.
We better fight now and not wait for Obamacare’s failure.

FoByFo on September 27, 2013 at 12:18 PM

I read Henninger’s piece earlier and his argument is valid…L.I.B…

PatriotRider on September 27, 2013 at 11:27 AM

Yep. No more “delay” talk. Let this disaster happen now.

Bitter Clinger on September 27, 2013 at 12:25 PM

If a retailer tried that with its advertising, the Federal Trade Commission would charge the chain with bait-and-switch fraud.

How can it be legal, let alone constitutional, for congress to pass a bait-and-switch law?

Isn’t there some constitutional or legal mechanism that could nullify it based on it’s inability to deliver what was (crookedly)voted for?

Oxymoron on September 27, 2013 at 12:39 PM

I’m GM of a small Ohio company with 30 employees. We switched insurers last year for a net decrease of 6% in premiums. This year, however, is another story. I had the privilege of informing our employees this morning that our renewal next month comes with across-the-board rate increases of 27%. Not too many happy faces in the group after that.

HoosierStateofMind on September 27, 2013 at 12:47 PM

Someone please tell Bob Beckel, who yesterday on The Five said no businesses were being adversely impacted by O-Care.

Another Drew on September 27, 2013 at 12:54 PM

If President Obama is ever asked about this, he’ll probably say, “That’s because the insurance policies that are being issued under the new law are 20% better than the old policies.”

J.S.K. on September 27, 2013 at 12:56 PM

Aince Ohio expands medicaid as prescribed in Obamacare, they can expect a double-whammmy of higher taxes when the Federal subsidy expires, too. You can thank John Kaisich for that one.

Deafdog on September 27, 2013 at 1:02 PM

Honestly, these businesses should consider themselves lucky. They could be going up by 100% or 200% like I’ve seen in some horror stories.

Doomberg on September 27, 2013 at 11:40 AM

This is significant because small businesses without the power to negotiate with the insurance companies were projected by the democratics to be big winners with Obamacare.

slickwillie2001 on September 27, 2013 at 1:08 PM

I’m GM of a small Ohio company with 30 employees. We switched insurers last year for a net decrease of 6% in premiums. This year, however, is another story. I had the privilege of informing our employees this morning that our renewal next month comes with across-the-board rate increases of 27%. Not too many happy faces in the group after that.
 
HoosierStateofMind on September 27, 2013 at 12:47 PM

 
In all seriousness, Obama’s ilk will just blame you for not giving them raises to cover the additional costs.

rogerb on September 27, 2013 at 1:13 PM

Of course, small business insurance coverage is notoriously expensive because the risk pool is limited to the size of the company insured. The Obamacare exchanges create a state wide risk pool, and will offer small business insurance at reduced rates. There are also tax credits available for qualifying business.

The article quoted here mentions that towards the end, as if the small business part of the exchanges were a last minute fix rather than a prime feature of Obamacare. Ed didn’t mention it at all.

Wait, don’t tell me: Obama promised if you like your insurance you can keep your insurance so…DEFUND!!!

Mr. Arkadin on September 27, 2013 at 1:16 PM

*sniff*

Ahhhh…that crisp, bracing troll-free scent. Autumn Obamacare is in the air!

Christien on September 27, 2013 at 2:04 PM

The stinking corpse of ObamaCare should be hung around the neck of every Democrat who voted for it.

GarandFan on September 27, 2013 at 2:42 PM

Of course, small business insurance coverage is notoriously expensive because the risk pool is limited to the size of the company insured.

Mr. Arkadin on September 27, 2013 at 1:16 PM

I don’t understand. An insurance company doesn’t just issue one health insurance policy for one business with, say, 20 employees and leave it at that. They might issue hundreds or thousands of insurance policies for hundreds or thousands of businesses with 20 or so employees each. Why can’t they spread out the risk pool that way?

J.S.K. on September 27, 2013 at 2:57 PM

OH went with 0bama both times. Serves them right.

Lou Budvis on September 27, 2013 at 2:58 PM

Why can’t they spread out the risk pool that way?

J.S.K. on September 27, 2013 at 2:57 PM

Because the insurance companies have no incentive to do so. Risk pools are, in a sense, artificial creations. A large company has bargaining power, and can demand lower rates because its risk pool is larger, and because they are going to guarantee a certain level of business. A small business has no leverage, and there is nothing to compel small businesses to join together in a larger pool. It’s just too complicated. The various experiments with trade association pools and various state-sponsored pools have not been encouraging.

The statewide exchanges in Obamacare along with the individual mandate have both the size and compulsion components to create an effective pool that leads to lower rates. That is what is being left out of these anecdotal articles that look at premium increases on small business insurance outside the exchanges.

Mr. Arkadin on September 27, 2013 at 3:41 PM

bullshit.

Murphy9 on September 27, 2013 at 5:23 PM

It’s the SS ObamaCare and the entire ocean is an iceberg.

NotCoach on September 27, 2013 at 11:44 AM

Bumper Sticker of the Thread.

AesopFan on September 27, 2013 at 5:51 PM

If I recall correctly, didn’t Ohio give Obama their votes?

And how did Ohio’s senators vote on cloture?

Stupid is as stupid does.

CTimbo on September 28, 2013 at 8:58 AM