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Obamacare: Not Helping




Told you so …

Years ago, we warned that U.S. President Barack Obama‘s socialized medicine monstrosity was going to be disastrous for the American economy – a theme we reiterated last fall (HERE and HERE).

Crazy, right?  Who’d have thought hundreds of billions in new taxes and additional government spending for “free” health care was going to be problematic, right?

Well guess what … it’s official: Obamacare is disastrous for the economy.

In a new report issued by the Philadelphia Federal Reserve, small business owners were asked to answer “qualitative questions about the effects of the Affordable Care Act (ACA) and how, if at all, they are making changes to their employment and compensation, including benefits.”

The news is not  good … assuming you were hoping for good news.  If bad news was your desire, though, prepare for unbridled euphoria.

By a whopping 6-to-1 margin (18.2 percent to 3.0 percent), businesses said they employed fewer as opposed to more workers than when the law was implemented – data that includes a surge in part-time workers (firms reported employing more as opposed to fewer part-time positions by a 12-to-1 clip – 18.2 percent to 1.5 percent).

Higher health care costs are being passed on to consumers, too – with 28.8 percent of companies reporting higher prices resulting from Obamacare compared to 71.2 percent reporting no change in prices.  Precisely zero companies reported lower  costs.

Are more people covered?  Nope.  Only 17.6 percent of firms reported covering more employees, while 14.7 percent said they were covering fewer employees and 67.6 percent reported no change in the number of employees covered.

Of course by overwhelming majorities, businesses said that their employees had higher premiums (88.2 percent), deductibles (91.2 percent), out-of-pocket maximums (76.5 percent), and copays (64.7 percent).

Oh and one more statistic … 41.2 percent of companies said they were offering a lower range of medical coverage compared to only 2.9 percent of companies that said they were offering a higher range of coverage.

Ouch, ouch, ouch, ouch OUCH.

So … was there anything in the Philly Fed report that was positive for Obamacare?

No …