This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Small Businesses Struggle With Obamacare

NEW YORK ( TheStreet) -- Just when business owners were getting used to President Obama's health care law, the government goes and changes the rules, leaving more uncertainty and stifling business growth.

Last week the Treasury Department said it would delay the Patient Protection and Affordable Care Act's mandatory employer and insurer reporting requirements by one year to January 2015.

Treasury says after listening to concerns from businesses, it plans to "simplify the new reporting requirements consistent with the law." The postponement will also "provide time to adapt health coverage and reporting systems while employers are moving toward making health coverage affordable and accessible for their employees," it said in a July 2 release.

Small-business owners and franchisors have been scratching their heads since the law's passing in 2010 to figure out how it would affect them and how to implement a rather confusing set of regulations.

According to a Newtek Business Services' June small business survey, more than half of the 1,000 respondents said they didn't know how to prepare for the upcoming health care reform changes.

Of the remaining, 24% plan to reduce benefits to employees, while 13% plan to rebid their policy and 11% plan to reduce business expenses, the monthly survey found.

At the basic level, a year delay does give some breathing room, particularly to businesses that have never had to provide coverage before.

Bill Rue Jr., president of Rue Insurance, a fourth-generation family-owned insurance brokerage, says the delay is positive for small businesses, such as those that depend on seasonal hires.

"We've had some clients that are very relieved because they have employees that have never had coverage before that would now have to have coverage," Rue says. "There's more time to offer some guidance and figure this out, but again it's an example of federal government setting up something [that some] states have opposing regulation and in the rush of trying to get this ready ... we have to put it on hold."
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.03 0.21%
FB $116.73 0.00%
GOOG $691.02 0.00%
TSLA $247.54 -0.07%
YHOO $36.59 0.00%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs