Research Briefing

ObamaCare Thwarting “The American Dream”

OBAMACARE’S NEW TAXES DRIVING UP THE COST OF BUSINESS

New Tanning Tax Turned A New Mexico Salon Owner Into An Activist Who Says Government-Run Health Care Thwarting “The American Dream.” “[Lisa] Rowen, who owns an indoor tanning salon in northeast Las Cruces, said she hands out fliers, posts notices at her business and is trying to spread the word on her Facebook page… But she said it’s likely she’ll have to pass the cost along to customers, meaning a rate increase for customers is on the horizon. ‘I’d like to be able to absorb it, but 10 percent is a lot,’ said Rowen… ‘A lot of my clients feel they’re getting an unfair shake…’ Tanning salon owners across the country have said the new tax measure will cost jobs and force some businesses to close because people may not tan as often… ‘We’re just small businesses living the American Dream like everybody else,’ she said.” (Diana Alba, “Business Owners Decry Tanning Tax In Health-Care Bill,” The Las Cruces Sun-News, 4/12/10)

• New Mexico Small Business Owner: “Some Of The Taxes I’ve Heard That Are Included In The Health-Care Bill Have Made It Seem Like Everything You Do Is Considered A Luxury.” “Honie Graham, 40, a client of Rowen’s, said having a suntan helps improve her appearance, and, as a small business owner, her clients’ perceptions are important… Asked whether the new tax would curtail her visits, Graham replied: ‘I probably wouldn’t come unless it was a totally special occasion…’ Graham said the impending new tax is an example of what she views as the government clamping down more on personal freedoms. ‘Some of the taxes I’ve heard that are included in the health-care bill have made it seem like everything you do is considered a luxury,’ she said.” (Diana Alba, “Business Owners Decry Tanning Tax In Health-Care Bill,” The Las Cruces Sun-News, 4/12/10)

New Jersey Brewery Expects Higher Costs Associated With Government-Run Health Care Will Be Passed From Suppliers To His Business. “Skeptics include Greg Zaccardi, president of Butler-based High Point Brewing Co. Inc., which can’t afford to provide health care for its three employees. Although High Point could receive tax credits to help pay for health care starting this year, Zaccardi said the credit — up to 35 percent of the employer’s contribution to the premium cost in some cases — would likely be too small to allow him to provide coverage. He added that he is concerned that his raw material suppliers, forced by the law to expand their employee health coverage, will raise their prices to pay for it. ‘If they are not already providing insurance, and they have to, I am sure it’s going to cost us,’ Zaccardi said.” (Hugh R. Morley, “Optimism On Health Plan Rare Among Small Firms,” The [North Jersey] Record, 4/11/10)

Ohio Benefits Lawyer Sees Little In Health Care Experiment That Reins In Costs, But Predicts Plenty Of Increased Costs For Employers. “Mark Abramson, a benefits lawyer with the Toledo law firm Robison, Curphey, and O’Connell, said he is urging patience for clients until all details of reform are known. Still, he predicted costs for employers providing benefits will rise. ‘There’s nothing in this law that reins in health-care cost,’ he said. ‘We’re not really even sure that it reins in the insurance industry. We’re certainly concerned that it’s going to raise the cost of doing business right now at a time when we really can’t afford it.’” (Larry P. Vellequette, “Local Firms Unsure Of Reform’s Impact,” The Toledo Blade, 4/23/10)

Member Of Minnesota Indoor Tanning Association Board Says Tanning Tax Is “Absolutely Excessive… Almost Like They’re Trying To Put Us Out Of Business.” “But business owners will definitely feel a hit in an industry already seeing a downturn, said Marty Gallagher, who sits on the Indoor Tanning Association board. ‘We’ve seen a 15 percent decrease in sales (industrywide),’ he said. ‘It’s really a low blow to us. ... And 10 percent is absolutely excessive. It’s almost like they’re trying to put us out of business.’ He said he’s fielded multiple calls per week from angry salon owners, who are baffled the government can do this.” (Britt Johnson, “Tanning Tax Leaves Some Feeling Burnt,” St. Cloud Times, 4/10/10)

• Owner Of Sunshine Palace In St. Cloud, Minnesota: “It’s Another Tax That’s Completely Unnecessary…” (Britt Johnson, “Tanning Tax Leaves Some Feeling Burnt,” St. Cloud Times, 4/10/10)

Muncie, Indiana’s Star Press Says Obama’s Government Takeover Of Student Loan Industry Could Kill Jobs, “Leav[ing] A Huge Hole In Muncie’s Economy.” “The clock is ticking down at Sallie Mae on whether the Muncie employer will have to lay off workers in the face of student loan reform -- which inexplicably was rolled into the recently passed health-care reform bill. … With unemployment rates in East Central Indiana hovering above 10 percent, existing jobs are too valuable to allow them to evaporate without a fight. The people who work at Sallie Mae help boost the local economy with the dollars they earn. They also put back into the community through volunteering, donating and serving. It’s not just jobs and dollars involved here. Closing the local call center, or moving it to Fishers, would leave a huge hole in Muncie’s economy, and put more stress on businesses operating on razor thin margins.” (Editorial, “We Still Need Sallie Mae’s Jobs,” The Muncie Star Press, 4/11/10)

AND WILL DRIVE DOWN THE QUALITY OF MEDICAL CARE

President Of The Maryland Hospital Association Says ObamaCare “Will Take The Hospitals From A Financially Fragile State To Worse.” “Maryland’s one-of-a-kind method of setting hospital rates - a system that has provided nearly $1 billion in additional federal money per year to local hospitals and consumers - is threatened by pressures to reduce costs under the U.S. health care overhaul measure. … Carmela Coyle, president of the Maryland Hospital Association, said federal health care changes are bound to strain Maryland’s rate-setting method. ‘We really are looking at continuous pressure on hospital rates. It will take the hospitals from a financially fragile state to worse.’” (Jamie Smith Hopkins & Kelly Brewington, “Rocky Road Ahead For State’s System Of Care?” The Baltimore Sun, 4/11/10)

Dean Of Mississippi’s Only Medical School Says “With More People Covered, Access Is Certainly Going To Be A Problem.” “Mississippi already has the nation’s largest shortage of doctors. It also has more than half a million people who could gain health insurance when the law takes effect. ‘With more people covered, access is certainly going to be a problem,’ said Dr. James Keeton, UMC’s vice chancellor for Health Affairs and dean of the School of Medicine. As Mississippi’s only medical school, UMC produces at least half of the doctors in the state.” (Elizabeth Crisp, “New Health Care Law May Impact Numbers,” The Clarion Ledger, 4/10/10)