The new health care law will lead to an increase in personnel costs for many companies that have not previously offered health care to their employees. The health care law will make each employee more expensive to hire and maintain. Companies are looking to cut costs and this will not do it higher costs will not help.
Evidence of reduced hiring has already been seen in many franchise businesses. Some businesses are tacking on extra fees to the price of their goods in an effort to curb the additional cost of health care for their employees. I think this is actually a bit of a sympathy ploy, as if customers will care that much about an extra 15 cents or dollar attached to their purchase. The responsible approach would be to cut the salaries at the top, but I'm sure that's too much to ask for. I'd rather pay the extra few cents to make sure that someone received health care benefits, but I'm also tired of seeing high paid executives pass the cost of doing business on to the people at the bottom. The health care law will encourage those types of companies to hire fewer people and work those they do have employed with them twice as hard.
Especially for small businesses, the cost to hire someone is gong to become impractical. I think ultimately, these people are going to be much more stingy and selective with their hiring practices, or all together just won't hire anyone new to help out with their business. It's an unfortunate reality to the health care act issued by Obama.
With the new healthcare law a lot of people who can't work due to health problems will be able to re-enter the workforce. On top of that, there will be a lot of jobs opening up on account of the new health care law and a lot of new job opportunities will be created from it.
While small and very small companies may hire fewer health benefits eligible employees, medium and large size companies will not make adjustments based on the new health care reform. If they want to keep and grow their business, they will have to hire talent. Business needs will the same, and those who will make the mistake to reduce their workforce in an effort to save money, may pay a higher price in the end. Sure, they might look for opportunities to reduce health care costs such as implementing Consumer Directed Health Plans (CDHP), but they will still need workforce to conduct their business.