ObamaCare Clusterfuck: Small businesses in non-Medicaid states face big fines
When the Affordable Care Act was written, its authors assumed that Medicaid — the federal-state health care plan for the poor — would be expanded to low-income adults in every state.
But the U.S. Supreme Court’s decision in July 2012 largely upholding the law made the expansion optional. Since then, governors in nearly half of all states have refused to take it up.
In states that choose not to expand Medicaid, small businesses may be liable for substantial penalties they would not have had to pay if the expansion had remained mandatory, according to a recent analysis by Brian Haile of Jackson Hewitt Tax Service. Based on actuarial estimates of the number of low-income workers who would have qualified for Medicaid in the 22 states that so far have said they will not expand, Haile estimated that small businesses could be liable for as much as $1.3 billion in penalties each year. In Texas alone, the penalties could amount to as much as $448 million each year, Haile wrote.
OK, a tax service talking their book of tax savings.
Nevertheless, what a mess. We've got a supposedly national program that keeps creating second class citizens of one kind or another on any issue you choose to name. I suppose the small businesses could just pack up and move, though. Because freedom!