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| Local small business owners wary of health reform bill |
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Now that the much-maligned and polarizing health care reform bill has been signed into law by President Barack Obama, small business owners and consumers are looking for answers as to what the future may hold.
The reaction to health care reform has been, to put it mildly, mixed with some sectors of private business, such as pharmacy providers, showing cautious support. Meanwhile, small businesses are concerned the rising cost of providing mandatory insurance to their employees will cut into a bottom line they have seen shrink during the Great Recession. Perhaps the most common reaction to the reform bill has been “wait and see,” a sentiment echoed by Spring Nursery and Landscaping owner Steve Garceau. “With so much uncertainty in it, no one can say how it’s going to affect you,” he said. “No one has come up with what the benefits are going to be.” Garceau is concerned the increase in taxes on his business could be between $60,000 and $100,000 per year. “A small business can’t absorb those costs, which will be passed on to customers,” he said. Greater Tomball Area Chamber of Commerce President Bruce Hillegeist said in a prepared statement that the Chamber is “fearful of the consequences” of the reform bill. “It is grossly unfortunate that Congress chose to ignore the will of the American people by making this decision. We are very concerned for small businesses, especially those that have less than 100 employees,” Hillegeist said. “It is very likely many of these businesses will not be able to carry the burden the Act imposes.” Garceau explained his business typically employs between 30 and 50 people and expects to pay higher premium for insurance coverage. “There’s less money available to do what you need to do,” he said. “People are going to be hesitant to hire people.” “There’s so much of it, you don’t know what to believe,” Garceau said. “In that case, you have to go with the worst case scenario.” Steve Hoffart, owner and head pharmacist at Magnolia Pharmacy, said that while he remains skeptical of some measures in the bill, there were some “key elements” that could benefit pharmaceutical consumers. One of those benefits will be for seniors who utilize Medicare drug coverage. The bill now provides a rebate to fill the “donut hole” of pharmacy coverage. Prior to the bill, seniors who spent more than $2,700 a year on medication often found their prescription medicine coverage plummet. “That got cleaned up,” Hoffart explained. He also praised the efforts for pharmacy benefit manager transparency. Hoffart said companies that act as “benefit managers” between he and a person’s employer made millions of dollars, profits that came under close scrutiny during the formation of the reform bill. “That money now has to be made public and that’s important,” Hoffart said. But like Garceau, Hoffart is keeping an eye on his expenses and how the bill will affect profits. “My fear is on the small business side, what’s going to happen with my payroll taxes and having to provide health insurance to part time employees, that scares me,” Hoffart said. “Our margins are so low, there is such a narrow window to make a profit.” He also warned that while the focus of the Congress’ efforts have been to make health care more affordable and more readily available to Americans, insurance companies will still be looking to make money. “Insurance is going to have to figure out ways to make up that cost difference,” he said. “Insurance companies are going to make money.”
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| Last Updated ( Monday, 29 March 2010 09:37 ) |






