President Obamas recently signed healthcare legislation has the many benefits of extending healthcare to over 30 million uninsured Americans while reducing the national deficit over the next decade. However, there are a number of immediate costs to large corporations with thousands of insured employees.
What Big Businesses Say About New Healthcare
Medical Companies Speak Out
Medical device manufacturers have warned that a new tax on companies producing medical instruments and equipment will mean that jobs and manufacturing may have to be shifted out of the U.S. in order to secure the already razor-thin profits.
One example is Zoll— the leading manufacturer of heart defibrillators. The company has 1,650 employees. The cost due to the new bill will be $5–10 million per year.
Companies Taking a Hit
3M will have a $90 million income tax charge. Caterpillar will have a $100 million income tax charge. Boeing will have a $150 million income tax charge. Deere & Co. will have a $150 million income tax charge. AK Steel Corp. will have a $150 million income tax charge. Valero Energy will have a $150 million income tax charge. AT&T will have a $1 billion income tax charge.
Pharmacies Should Thrive
The new healthcare law means more prescriptions. And more prescriptions are good for at least four companies: CVS Caremark (CVS), Express Scripts (ESRX), Medco Health Solutions (MHS) and Walgreens (WAG).
Small Business in the USA
Over eight million small businesses with less than 100 employees- 70 percent of that group have fewer than five employees- are super-small businesses. Super-small businesses represent 99.7 percent of employers.
Health Bill and Small Businesses
Small businesseswith 50 employees and lessare exempt from coverage provisions.
Businesses with more than 50 employees that do not offer health insurance as a benefit and have at least one of the full-time employees getting a subsidy from the federal government to purchase health insurance on his or her own will have to pay Washington a fee of $2,000 for every full-time worker.
Sectors Who Lobbied on Healthcare Reform in Congress in 2009
Among trade and professional organizations, 745 clients lobbied. Among hospitals, 207 clients lobbied Congress about healthcare reform. Miscellaneous groups sent 166 clients lobbying. From the insurance sector, 105 clients lobbied Congress. In manufacturing, 85 clients lobbied. From the education sector, 72 clients lobbied Congress. From the contractors, consultants and administration sectors, 67 clients lobbied Congress about healthcare reform. From the drug makers sector, 66 clients lobbied. From the government 51 clients lobbied on healthcare reform.