Small business joins the health care lawsuit

Posted: May 14, 2010 in Health

That interesting map showing the states with pending action against the new health care law was pretty interesting. Now, the National Federation of Independent Business (NFIB), which is the most influential small business lobby, has announced they are joining that state lawsuit filed in Florida by 20 state attorneys general and governors. So the embroglio grows.

The NFIB announcement is important because they have a large number of members nationwide who are very active in matters affecting small business owners. So this action and every argument back and forth will get plenty of coverage beyond evening news soud bytes meant for mass consumption. Many small business owners are livid about the new burdens placed on them by health care reform legislation. With their presence and clout this will become a major factor in upcoming elections.

Small to medium size businesses with more than 50 employees are required to contribute to the cost of their workers’ health insurance. If you have a business that exceeds that threshold what would you do? Maybe you can do with 49 employees instead of 52 so layoff a couple. That would be pretty tempting because the marginal cost savings to your business would be huge.

Or maybe you can outsource an entire piece of your business. Get over your nationalistic bigotry. Your fellow Americans aren’t better people than the other good people in the world, and your government is crushing your business. So give some decent people in another country a big opportunity and at the same time keep your business afloat. The outsourcing trend has been flip flopping back and forth for a while, with a large exodus to places like India some years ago followed by pulling much work back due to substandard performance. Many outsource centers are improving and this new law provides a fresh incentive to outsource. Instead of laying off a handful of people and trying to shift the burden to the remaining employees, outsource and get a double savings both on salaries and health insurance costs.

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