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Small Business Owner Fears Obamacare’s Impact on Jobs and Economy

In 2006, when Indiana small-business owner Scott Womack purchased a development agreement to expand his IHOP franchise into Ohio, he had no idea Congress would pass a massive overhaul of the health care system four years later. Today, one year after that legislative overhaul became law, Womack is very aware of Obamacare — and of its effects on his plans for growth. Under the year-old law, Womack must provide health insurance to all full-time employees beginning in 2014. Right now, he employs nearly 1000 full- and part-time workers and already offers insurance to his management staff. He simply does not know how he’ll generate the revenue to do more. Womack estimates the cost of the law to his company will be 50 percent greater than his company’s earnings — in other words, beyond his ability to pay. That’s not because his company of 12 IHOP restaurants in Indiana and Ohio is unprofitable. Quite the opposite, in fact. By industry standards, he’s doing well. But labor-intensive restaurants generate profits of just 5 percent to 7 percent per employee. With fears about how he’ll afford to provide health insurance with those low profit margins, Womack is worried about his expansion plans in Ohio. He can’t exactly cancel his development agreement. But he’ll only be able to fund his new restaurants — and the construction, real estate and manufacturing jobs that would go along with them — if Obamacare is repealed. “If the health care reform law is not repealed or if the

13 Responses to Small Business Owner Fears Obamacare’s Impact on Jobs and Economy

  1. md.monir Hossain says:

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  2. TheRetiredtrucker says:

    It will cause most min wage jobs to either cut back their employees workweek to less then the required 30 hrs/week, eliminate full time positions and in many cases will cause layoffs. Was not well thought out by Obama and Pelosi

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  4. Nahid Hossain says:

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  7. BeepimajeepBeep says:

    you are not entitled to healthcare, and healthcare isn’t free. the collapse of america is coming soon. hopefully

  8. eldershima says:

    Who would pay the staff at the hospital? What incentive would there be for students to aspire to become doctors? 4 years college, 4 years medical school 3+ years residency… and the whole time getting a 3.5+ GPA in some of the hardest classes at a college + various extracurricular activities?

    Right now hospitals don’t turn away people that are sick if they go to the emergency room. They take them regardless of citizenship even.

    Who is going to pay for what you suggested?

  9. xpandergt says:

    I’m glad the GOP didn’t do anything with healthcare. It was better to do nothing and work on something that made sense then the hastily create a health care law that does far more damage then good like Obamacare.

  10. xpandergt says:

    People who advocate for Obamacare are clueless to how it’s negative impact on the economy and small businesses. Even under Obamacare, healthcare is still increasing in price. How can people afford to pay for healthcare if they are unemployed due to the law or they are converted to part time with just 29 hours? The knee jerk reaction is to look at the business owner as the bad guy, but always forgetting that he or she is the one who gave the people jobs in the first place.

  11. TruXter Jones says:

    yes we need healthcare

    EVERYONE KNOWS THIS

    When when will people wake up and realize that making people pay for something takes money.

    If I had a lemonade stand that made enough money to employ me and one person full time, at no profit to either of us other than a small income…. forcing me to pay insurance would have to come from SOMEWHERE. So… Fire the employee work double time make double profit.

    Make sense to you? or do you left nuts just want to call everything free?

  12. imtallpaul says:

    Maybe the righties will wake up and understand that the USA needs national healthcare. Employer based healthcare is the WORST SYSTEM!

  13. kellyt6894 says:

    His profit (the actual amount he makes) is $3-5000 per employee. The insurance for each employee will cost him $7-10,000. How can ANYONE not understand the impact this will have and still blame the business owner?

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