Report: 74% of Small Businesses Plan to Make Cuts Under Obamacare

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MASON CITY, IA – A new report from the US Chamber of Commerce suggests that about 75% of small businesses plan to cut hours or even jobs to help combat the costs of the Affordable Health Care Act.

We talked with a local business to see if locally we will see that same trend.

“I guess right now we’re still learning like everyone is.”

Lisa Heimer is the CFO of Woodharbor Custom Cabinetry in Mason City. She says there are a lot of unknowns as to how it will affect her company when they switch over to the Affordable Health Care Act or as many know it as; Obamacare.

But she is aware of how it will affect the cost of insurance renewals.

“We’ve estimated that to be about, it could be as much as $190 per member that’s covered by insurance,” says Heimer.

That’s not just the 180 employees of Woodharbor but all the family members of employees that are covered as well.

“Doing a calculation on that, if we kept everything exactly the same today and didn’t change the plan, didn’t change coverage and we got a flat renewal it could impact us maybe 7% of additional costs,” she says.

As far as how else they’ll be affected, well, Heimer says that’s really unclear and they’re not the only business in that boat.

“They have that wait and see attitude right now they’re really looking to see if they can gather more information to make an informed decision. I think that’s primarily the biggest thing that people are looking for in that regard,” says Tony Buhr with Manpower.

Burh tells us the doesn’t foresee reduced hours or jobs being eliminated, at least in this area, for now.

“I’m not really hearing that type of information about whether people are cutting hours or jobs in the safe of the affordable health care act in north Iowa,” adds Buhr.

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