ObamaCare's side effects becoming clear
More companies warn health care law will raise costs, cut jobs
- Duration 8:47
- Date Nov 17, 2012
More companies warn health care law will raise costs, cut jobs
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Now that the health care laws here this day and more side effects popping up from the law despite the president promising it would lower cost.
Wal-Mart now warning its employees they'll have to pay up to 36% more for health insurance next year.
And an owner of dozens of Denny's restaurants is a lot will force him to cut workers' hours and -- prices.
By 5% on his customers and he's just one of many saying similar things our guys have been warning this what happened but how bad is this going to get.
Well hello everybody I'm Cheryl Casone and welcome to cash NN.
I catch it critics wait we have Wayne Rogers Jonathan -- Tracy Byrnes jog late killed and are different -- -- be back with us today.
So welcome to all of you can't Tracy you have one of -- on the show you're warning about the side effects of the health care law pop that's a -- acting -- -- bad already be unintended consequences are out of control share.
Look people are gonna get laid off we're hearing that -- read because companies just don't want to pay for health care.
If you have a job your average might get cut to part timer console and you know my brother just got hired as a -- good nobody wants -- pay health care anymore.
Of course then there's the premium angle of it we are just so I -- -- our premiums are going up because it is getting more expensive.
Everything is going to be affected by this and we've been -- since the day Pelosi said she had to go read the darn thing waves -- One of the biggest criticisms beside that I know your prison than in actually read the ultra -- put it that's it right.
But one of the big criticisms here is that there was no cost control in the -- so here we are.
It's going to be that way you know health care costs are rising everywhere and it's and it's a universal problem and that the -- that thing is that -- the people are gonna try to find ways to get around this in the sense that it's gonna cost them more and if they can find -- they'll do -- you got 2200.
Pages of -- that you're right nobody has read the people who administering -- haven't -- -- beginning to read -- we don't know what the ultimate cost is going to be they're gonna -- taxes that come out of this all kinds of other things that happen.
In the meantime if you hi are over.
And in this -- the what is considered a small business if there are fifteen people are less you are subject of one thing after your hiring more than fifty people you are subject does something else.
If those people work.
Thirty hours a week they're gonna come under Obama care if they work 28 hours a week a 29 hours a week.
They do not so what you gonna have his people cutting back the time that the people instead of a forty hour work week they'll have more people working at 48 -- right.
It's just -- he didn't -- kinda fall -- of anything you don't know yet.
You're right -- Christian thing -- the other point here and the question is are we gonna see more US companies do you think again the scaled back.
And kind of fudge the numbers it has several CEOs come on -- the business -- Christian and tell us that's what they're planning to do.
Well you know in a lot of cases where you're talking about restaurants -- -- and other in the food service industry this is what they've been doing for a decade or more.
So to all of a sudden link this to Obama cares really disingenuous you can't public.
They're -- yeah.
Being there this yeah insult you but that's what they that they are blaming there are coming on -- national somebody -- cents.
I have already when they -- already a lot.
They blame it -- they've already been doing it so they're blaming something that hasn't -- happened for something that they've already been doing.
And let's take a look at real world experience let's not speculate.
Very much resembles what obamacare is and since pull are Romney care was instituted in Massachusetts.
Employers covering their employees with -- insurance has gone up from 70%.
To 80% so we can take a real life example not just wild speculation and see that there -- absolutely no reason.
Why employers can't cover their employees of health care.
Well John went cold until April I will say this CEO this is not speculation these are facts is it has of his companies that are actually making these moves and cutting down and then you've got it for example of advent of the -- -- -- the forty restaurants out of Florida all the Denny's.
He cinematic cut back and a Mexican -- 5% of the bills.
Of my customers.
To keep those insure that -- have on the bucks and this is real.
Yeah and if this were a lot and this is not wild speculation this guy did he's he says that calls him an extra 5000 dollars per employee per year.
And he says of I have to cover all of our employees that's about a 175000.
Dollars for restaurant.
He -- a lot of our restaurants don't make a 175000.
Dollars so here's a guy who literally cannot afford -- care.
And what he's saying is I wanted to cut guys back to 28 hours those -- at the front.
Studies have grown -- had to get a second job because they can't afford to live just don't 48 hours a week of play.
And this is real life situations and these companies that problem we have is just like Tracy said we had no Health Care Reform.
Always -- it was insurance reforms to get more people into a broken system.
But Jonathan at this time it it you know what if you look at the average -- what many companies are doing what they're gonna -- were looking at an average of 9% higher premiums in 2013 and equality.
Extremists those top shelf plans and just cutting them out wal -- doing that but still offering health insurance.
What wal mart's Papa John's -- the mean the result of obamacare Cheryl is destruction.
That was Obama's goal -- in obamacare is not the fix health care.
-- was to destroy the last remaining vestiges of an actual free health care system in this country Obama talked openly about -- -- -- -- for single -- and of course we're seeing that play out now in practice -- every private option.
Is literally sucked out of existence.
I'm more worried about even the health care at some -- it's only that we're seeing health care options go away we're seeing.
Doctors leave the practice and leave the practice of medicine in massive scale health care in this country is about to be as good as the post office the DMV stay healthy.
But that's the thing like it there's no medical there's no we haven't fixed the problem because now you got people that are gonna turn did it.
Like Wal-Mart -- I don't look I didn't say opt out I don't wanna pay I wanna pay and Evan goes to the public exact.
That's them there -- single -- now -- Obama's goal yeah it's gonna destroy the medical system and basically we will lose all our quality doctors.
Christian -- wait wait -- that.
I hate to let facts get out and get in the way of all your story here about what tax credits you'll look if you look at restaurants were already 75% of restaurant employees are working part time.
So what we're talking about now was that they're gonna continue to have part time workers but those workers are now gonna have health insurance and what we're lamenting what -- all are lamenting is the fact that workers who were making an average of about 151000.
Dollars a year.
Are gonna actually actually have health insurance now that's the problem that you -- in our economy.
I think -- don't let anyone and it they're gonna have a at a job they don't have.
That's the hope white Christian I mean it's not just restaurants -- either striker is a company.
Actually -- headed by an Obama supporter they're laying off workers and at a restaurant company paramedic John -- company's self starters and you probably only has left little fire all of its employees they're not gonna do it because we can't take anybody you don't have employees select -- -- -- -- -- let's not pretend.
Okay what -- wouldn't bring in that would.
Let me read Wayne Rogers because wait what we're talking about here is maybe the companies and this is Christians point -- -- not.
Laying off people they may be just restructuring how they cover the employees.
That they have I mean is that a threat do you think to jobs are now.
All due respect a Christian Christian you mentioned that -- that the restaurant.
Businesses not necessarily represented -- I might -- as you well know what about a principal and a business we employ over 200 people.
It is going to be a big impact on not we -- not know yet what it's gonna -- do.
Are we gonna have to lay off some people yes we will probably have to lay off some people we will have to reschedule a lot of things a lot of things will be done.
We can't certainly absorb -- all that's for -- war.
So this thing has not been thought through by the by the bureaucracy and it wasn't -- fought fought through -- the people who wrote the bill.
They didn't know anything we got idiots running it now we're gonna have this try to solve this in some way -- it isn't going to be pleasant some people don't lose their jobs that is for sure.
And some people are going to get cut back and it is not necessarily going to be.
Universal health care surfers.
Just let us questioning all right is a -- -- before we go I don't ask you do you think that we're gonna see more Americans because they can't for the higher premiums.
Just drop their own health -- together.
Yeah I think we will -- -- what -- say about consultants you can call it contract labor I think that's where we're gonna go to system.
I don't think you can argue that health premiums are gonna go up because we did nothing for Health Care Reform there's no reason that up a heart procedure -- hospital calls fifty times as much and other hospital there's no transparency we have not dealt -- that we only -- in search reform.
That is going to exacerbate the fractures all right well -- Everybody great discussion thank you so much coming up.