CRN Intelligence: Exclusive Research On How Obamacare Is Impacting Solution Providers
CRN Intelligence: Solution Providers Sound Off On Obamacare
CRN Intelligence, the research arm of CRN, polled 246 solution providers to get their views on how Obamacare has directly impacted all aspects of their business including health-care costs, hiring and whether they would like to see the law repealed. Here are the results of the CRN Intelligence survey.
Majority Of Solution Providers Hit By Rising Health-Care Costs
Fifty-one percent of the 246 solution providers polled by CRN Intelligence said Obamacare, the Patient Protection and Affordable Care Act that was signed into law by President Barack Obama on March 23, 2010, has led to higher health-care costs for their companies. Some solution providers, such as New York-based eTribeca, have dropped insurance coverage for the majority of its employees due to the increase in costs resulting from the Affordable Care Act.
Percentage Of Partners Seeing A 1 Percent to 20 Percent Rise In Health Care
Of those CRN Intelligence survey respondents that have seen higher health-care costs for their companies, 49 percent said their health-care costs were up from 1 percent to 20 percent. The National Small Business Administration has cited cost as the No. 1 driver of whether or not a small business will offer health insurance.
Percentage Of Partners Seeing A 20 Percent to 40 Percent Rise In Health Care
Of those CRN Intelligence survey respondents that have seen higher health-care costs, 35 percent said their health-care costs were up 20 percent to 40 percent. Small technology solution providers, such as five-person IT shops, do not qualify for group plans and are often forced to provide coverage through the more expensive individual markets.
Percentage Of Partners Seeing A 40 Percent To 60 Percent Rise In Health-Care Costs
Of those CRN Intelligence survey respondents that have seen higher health-care costs, 10 percent said their health-care costs were up 40 percent to 60 percent. Small businesses report spending an average 13 hours and $1,274 per month -- and that's just on the administrative side of understanding the Affordable Care Act, according to the National Small Business Administration.
Percentage Of Partners Seeing A Decline In Health-Care Costs
Only 9 percent of the CRN Intelligence survey respondents said Obamacare has led to lower health-care costs for their companies. The CRN Intelligence survey results are in line with a Washington Post-ABC News survey earlier this year that found that only 8 percent of 1,000 people polled saw their health-care costs declining under Obamacare.
Percentage Of Partners Seeing A 1 Percent To 20 Percent Decrease In Health-Care Costs
Of the 9 percent of CRN Intelligence survey respondents that have seen lower health-care costs, 67 percent of them say their health-care costs have declined from 1 percent to 20 percent.
Percentage Of Partners Seeing A 20 Percent To 40 Percent Decrease In Health-Care Costs
Of the 9 percent of CRN Intelligence survey respondents that have seen lower health-care costs, 14 percent said their health-care costs have dropped 20 percent to 40 percent.
Percentage Of Partners Seeing A 40 Percent To 60 Percent Decrease In Health-Care Costs
Of the 9 percent of CRN Intelligence survey respondents that have seen lower health-care costs, 10 percent said their health-care costs have dropped 40 percent to 60 percent.
Percentage Of Partners Seeing A 60 Percent To 80 Percent Decrease In Health-Care Costs
Of the 9 percent of CRN Intelligence survey respondents that have seen lower health-care costs, 5 percent said their health-care costs have dropped 60 percent to 80 percent.
Percentage Of Partners Seeing AN 80 Percent To 100 Percent Decrease In Health Care Costs
Of the 9 percent of CRN Intelligence survey respondents that have seen lower health-care costs, 5 percent said their health-care costs have dropped 80 percent to 100 percent.
Percentage Of Partners Seeing No Impact On Health-Care Costs
Forty percent of the CRN Intelligence survey respondents said Obamacare has had no impact on their health-care costs. In contrast, a Gallup survey earlier this year found that 64 percent of respondents claimed Obamacare has had no impact on them.
Percentage Of Partners Cutting Back On New Hires
The CRN Intelligence survey found that 27 percent of respondents reduced hiring as a result of Obamacare. Under Obamacare, businesses with more than 50 full-time employees fall under the "employer mandate" and must provide health-care coverage to their employees by 2015 or face a penalty.
Percentage Of Partners Increasing Hiring
The CRN Intelligence survey found that just 4 percent of the respondents increased hiring as a result of Obamacare.
No Impact On Hiring
The CRN Intelligence survey found 68 percent of the respondents said Obamacare had no impact on their hiring practices.
Percentage Of Respondents In Favor Of Repealing Obamacare
Fifty-seven percent of CRN Intelligence survey respondents were in favor of repealing Obamacare. Timothy Shea, the CEO of Alpha NetSolutions, a $1.7 million Millbury, Mass., solution provider with 18 employees, is fed up with government mandates on health care. In fact, Shea is moving jobs overseas where he has found solid talent and does not have to pay health-care costs. "My last six hires have been overseas," he said. "That's how I adapted to Obamacare."
Percentage Of Respondents In Favor Of Keeping Obamacare
Forty-three percent of CRN Intelligence survey respondents said they would not like to see Congress repeal Obamacare. Pat Gallagher, owner of Waukesha, Wis.-based Data Logic Systems, said he did not have health insurance for himself, his wife or his five children for the past 30 years running his own business. He said the federal health legislation would have saved him an "awful lot of money" if it was available when his wife passed away from cancer 15 years ago. "This law is going to prevent an awful lot of bankruptcies," he said.