Small business owner on Obamacare: Don’t hire more people 

Samuel Knowlton is the owner of a small New York-based web design firm named inLeague, and is hesitant to expand because of Obamacare. Knowlton, a college friend who responded to a request on Facebook for small business owners to talk about their problems with health care, offers this:

My small business is well under 50 employees (really, just 1, but soon 2 or 3) so not as juicy a story as it might be, since the mandates to provide coverage don’t hit you until you have 50 (I think).

What I can tell you is that, having lived in New York City for the last 6 years, my insurance costs are through the roof just for me and I’ve barely ever had any claims. There’s a very simple exercise I ask people to do (they hardly ever do it) that illustrates my problem.

Go to eHealthInsurance.com. Put in a birthday that makes you around 29 or 30. Put in 10025 (Upper West Side, Manhattan) or 11238 (Brooklyn) and say you don’t smoke. Look at the plans available to you. Mediocre insurance is about $300/mo, good insurance is $500+.

Now do exactly the same exercise with some nearby states. Pull up zip codes for Stamford, Conn. or Bethlehem, Pa. Then put in Iowa City, Iowa (I did this recently as I’m moving but don’t know where and was curious how much my costs would change).

What you see is basically explained in this article.

New York isn’t allowed to deny coverage and subsidizes anyone making under $2200 a month, so the premiums for a small business or individual are upwards of $300, while the same plan one or two states away is half or even a third of that.

What the health care package does is tell me that I want as few employees and as many contractors as possible.

About The Author

J.P. Freire

Bio:
J.P. Freire is the associate editor of commentary. Previously he was the managing editor of the American Spectator. Freire was named journalist of the year for 2009 by the Conservative Political Action Conference (CPAC). You can follow him on Twitter here. Besides the Spectator, Freire's work has appeared in... more
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