You're watching...
ObamaCare has left one entrepreneur torn between keeping health care insurance for her employees and protecting her bottom line
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
-- your employer getting ready to drop your health care coverage a -- study finds there is almost day one in ten chance that your employer is that going to Deloitte consulting and survey 9% of employers will stop offering workers' coverage.
As obamacare takes effect why.
Well there's a simple answer the cost of paying health benefits is expect to be higher than not paying them.
Gail Johnson president CEO of -- stationed a group of early childhood education -- she is debating the cost of health care.
-- health insurance for her workers now Gail thank you for join us.
Thank you so much for inviting me actress have a quick questions how many employees you have.
We have about a 175.
Employees in our corporate schools and our franchise system it's well over 500.
Do you provide health insurance -- 500 are to the for the 170 or some -- number just a 175.
And our corporate schools is what I'm primary myself and responsible for.
Give any idea that cost of that.
Yes our health care coverage is of bound to 500 -- 550000.
Dollars a year.
-- when as so I you considering an eye on diet taking prices -- factored in what's gonna happen wind obamacare kicks and -- maybe put that figured out how to affect you.
I think this health.
Care reform legislation has really already begun to impact us.
In the last two years our health -- care premiums the first two years ago went up 18% in last year 12%.
It was a one of those startling oh my goodness this can't be happening.
From the beginning I have tried to provide health insurance for my teachers so that they could have access to health care with limited out of pocket expenses.
Open these expenses came I was forced to do something that I had never had to do which is provide health care deductibles.
Our teachers.
Our preschool teachers and education does not pay a lot so I -- this was a devastating move on my part.
Now with the increasing home.
Uncertainty of what our health care premiums will be between now and 2014.
I'm wondering what does that mean when he gets to 2014.
And I have to make a decision at that point.
Do I continue to pay high.
Increasingly high premiums and -- -- health care coverage for my employees.
So that my teachers have health care insurance within our company.
More.
Do I say.
This is more than we -- then our bottom line can bear we need to save this money to invest into our schools and into our programs.
There are exchanges available to you.
And so I can say to my teachers go to the exchange and get health care.
For that I must pay a 2000 dollar penalty.
But the bottom line savings from paying the penalties vs paying what I'm paying now.
Could be up to 300000 dollars by -- and that's a business decision that I must make do I save that money and invested in my school's.
Or do I send my and do I keep the insurance so that perhaps I can be more competitive.
And the marketplace and attract better teachers for our schools.
It's an incredibly difficult decision what is the right thing to do.
I'm not the only one with this decision to make there are many other midsize businesses like mine.
That have fifty or more employees that must make that kind of decision.
Gail thank you let's head straight then very helpful pressed -- trying to understand that what does slob this paper going to thank you -- Thank you.
