What the IRS Obamacare ruling means

The headline at the New York times suggests that the Obama administration has cut the escape for business’ trying to avoid the costs of Obamacare:

Many employers had thought they could shift health costs to the government by sending their employees to a health insurance exchange with a tax-free contribution of cash to help pay premiums, but the Obama administration has squelched the idea in a new ruling. Such arrangements do not satisfy the health care law, the administration said, and employers may be subject to a tax penalty of $100 a day — or $36,500 a year — for each employee who goes into the individual marketplace.

But while some might crow over this change here is what it’s going to mean:

1. Pink slips

You don’t have to provide health insurance to people who do not work for you. If the government won’t allow companies to make a cost-effective decision they will cut those costs a different way and the cheapest and fastest is to cut people.

2. Part Timers:

If you can’t afford to lose people the next choice will be to reduce hours or create new part-time positions to replace the full-time ones that required insurance coverage.

3. Hiring Freezes:

If you work for a company on the edge of the Healthcare requirements and in an industry where part-time workers simply won’t do be prepared to do a lot more work with a lot less help. Your employer will not be bringing on any more people to give you a hand so you’re just going to have to do that work yourself.

4. Lawsuits:

An awful lot of companies have waivers from the rules of Obamacare, if your company competes with any of them a lawsuit will certainly be in order to obtain the same benefits that your competition gets.

These are only the things that have occurred to me, be assured that lawyers making $100+ an hour will be working night and day for companies looking to avoid those costs, and will find them.

All of these things will have political costs to Democrats, not just in 2014, but forever so remember my friends on the left, you did this to yourself.

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