Author Archive | John Barrett

How Defined Contribution Health Benefits Help Employers Recruit and Retain Employees

It costs a typical employer the equivalent of 6-9 months in salary each time they have to replace a salaried employee—that’s $20,000 to $30,000 for a $40,000 manager in recruiting and training expenses, along with the potential lost revenue from customers.

Employers can save approximately half of these expenses, $10,000 or more per replaced employee, with a health benefits plan that helps them recruit new employees and retain existing employees.

Defined contribution health benefits provide many advantages over traditional employer-sponsored benefits. Rather than paying the costs to provide a specific group health plan (a “defined benefit”), employers can fix their costs on a monthly basis by establishing a defined contribution health plan that gives employers and employees full control over healthcare costs – the employer’s costs are predictable and controllable, while employees are given full control over their health care dollars and choose a portable plan that meets their exact personal needs.

How do defined contribution health benefits work?

An employer gives each employee a fixed dollar amount (a “defined contribution”) that the employee chooses how to spend. Typically, employees are allowed to use the defined contribution to reimburse themselves for personal health insurance costs or other medical expenses such as doctor visits and prescription drugs.

Under the traditional approach to health benefits, the company selects and funds the same insurance plan for all employees in a one-size-fits-all approach.

Alternatively, in a defined contribution approach, the employer designates a fixed amount of money, the “defined contribution”, and employees purchase personal health insurance directly from any insurance company they choose, selecting products that specifically meet their family’s needs and budget.

What is a personal health policy?

A personal health policy, sometimes called an “individual” or “family” health insurance policy, covers you and your designated family members. You purchase a personal health policy through a licensed health insurance agent who is appointed to represent the insurance companies in your state.

Personal health policies now cost 1/3 to 1/2 the price of similar-benefit employer-sponsored coverage in 45 states. This is primarily because insurance carriers in 45 states are allowed to: (1) price based on age bands and (2) reject or charge more to applicants for personal policies with pre-existing conditions.

If you or a member of your family are rejected or charged more for a personal health policy because of a pre-existing medical condition, you typically become eligible for state-guaranteed (“HIPAA-guaranteed”) or federally-guaranteed (“PCIP”) personal health insurance.

How do businesses determine the amount of money allocated to employees?

Providing different levels of benefits to classes of employees is at the core of benefits compensation and is routinely done by major corporations.   With salary and other types of compensation, employers routinely compensate groups of employees differently. Field sales people are compensated differently than sales managers. Some employees get company cars, while others earn quarterly bonuses. Because health benefits are such an important part of compensation, why not provide benefits that vary by class of employee?

With defined contribution health benefits, businesses can create employee classes that offer benefits tailored to the company’s objectives, transforming a health benefit plan into a tool to find and keep great people.

For example, consider an electrical contracting company who struggled to hire and keep journeymen electricians in a very tight labor market. Instead of offering the same health plan to all employees, the company created separate classes for apprentices and journeymen and gave journeyman $350 more per month in their HRA. This large increase helps the company reduce attrition among journeyman. Plus, it creates a visible incentive for apprentices to complete the education required to become journeymen.

As there are no minimum or maximum contribution requirements, a business can design their defined contribution health plan to fulfill its exact recruiting and retention needs.

Conclusion

Recruiting and retaining key employees is essential to every business, and a company’s health benefit program is a key part of the compensation they offer to their employees. Due to the rising costs of traditional employer-sponsored health insurance, defined contribution health benefits are gaining popularity in the U.S. Rather than paying the costs to provide a specific group health plan (a “defined benefit”); employers might want to consider fixing their costs on a monthly basis by establishing a defined contribution health plan.

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The high risk of high-risk pools

When the health reform law’s high-risk insurance pools launched last summer, there was a lot worry that the new coverage option would be swamped by demand from uninsured individual. Then, there was worry about too little demand: The insurance pools saw anemic enrollment, with some states enrolling just a few dozen subscribers. And now, there’s a new worry: The high-risk pools attracted such expensive patients, with costly medical needs, that nearly a quarter are running short on cash.

Nine states have asked HHS for additional funds to continue running their Pre-Existing Condition Insurance Plans, the program meant to cover some who insurers have denied coverage between now and 2014, when insurers’ ability to discriminate on preexisting conditions ends. Two states, New Hampshire and California, have requested additional funds twice now, as their high-risk pool’s bills exceed expected costs.

Montana is among the states seeking more funds, and it points at the type of people who enrolled in the plan as the reason for it’s request. The Montana plan has 269 members, a $16 million budget and, via the Billings Gazette, not enough money:

The $16 million, issued in mid-2010 as part of the federal health reform law, was supposed to cover costs of the subsidized health insurance program through 2013 for as many as 400 people covered by the pool.

Yet initial cost estimates turned out to be too low, because the medical costs per covered customer are higher than expected, said Cecil Bykerk, executive director of Montana’s pool.

“Our numbers (for enrollment) were fairly accurate, but per-member, per-month claim costs have been much higher than the original assumptions that we used,” he said.

This isn’t exactly surprising: When the federal government created a new health insurance program catering to those who have had trouble obtaining insurance in the past, it makes sense that those who have very high medical costs would be first in line. It hasn’t helped that the premiums have proved relatively pricey: In Montana, the monthly premium for the high risk pool is as high as $681. Anyone who enrolls in a plan with that kind of premium likely expects to have relatively expensive medical costs in the near future.

 

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Group Health Shrinks as Individual Health Grows

The government is documenting what commercial health carriers and brokers have been saying for months: 2010 was a terrible year for group health plan enrollment.

Brokers, consultants and others said group plan case sizes fell that year as employers slashed head counts.

Analysts at the Office of the Actuary at the Centers for Medicare and Medicaid Services (CMS) say in the latest National Health Expenditure Accounts report that group health enrollment fell by 2.6%, to 166 million.

The drop meant that 4.5 million lost employer-sponsored coverage than gained it.

The number of people with individual health coverage increased 3.6%, to 22 million, but that market is much smaller than the group market. The increase in individual health program enrollment translated into a net gain of only 800,000 covered lives.

Enrollment in Medicare increased 2.5%, to 47 million, and enrollment in Medicaid increased 5.8%, to 54 million.

Together, those programs and the Children’s Health Insurance Program (CHIP) now cover about 104 million people, or about one-third of the U.S. population.

The number of people who were uninsured increased 1.6%, to 47 million. The rate of increase in the number of uninsured people was down from 8.9% in 2009.

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IRS Puts W-2 Health Advice in a Nutshell

By

January 6, 2012

An Internal Revenue Service (IRS) has tried to boil the new tax Form W-2 health benefits cost reporting requirements down into terms that mortals without advanced accounting credentials can understand.

Wanda Valentine, a senior tax analyst at the IRS, writes about the new W-2 reporting requirements in an employer newsletter.

The Patient Protection and Affordable Care Act of 2010 (PPACA) requires the IRS to establish health benefits cost reporting requirements. Later, the IRS is supposed to set up a program to impose an excise tax on health benefits packages with costs that exceed a designated threshold.

Employers are supposed to report an employee’s health benefits cost in Box 12 on the W-2 using Code DD to identify the amount.

Benefits cost reporting is voluntary for the W-2 forms now going out, but reporting is supposed to become mandatory for issuers of 2012 W-2s.

Even in 2012, “the amount reported does not affect tax liability,” Valentine says.

The IRS tried clarify the new reporting rules earlier this week in IRS Notice 2012-9, a long, complicated batch of guidance.

“The amount reported on the Form W-2 should include both the portion paid by the employer and the portion paid by the employee,” Valentine says.

Valentine notes that, under current law, employers will always have to include some types of expenses and will never have to include others.

The IRS is developing guidance for handling a third batch of benefits expense categories. It will provide transitional relief allowing employers to keep those expenses out of the W-2 health benefits cost totals until guidance is available, Valentine says.

Categories that can always stay out of the health benefits cost total include the cost of:

  • Long-term care coverage.
  • Coverage for “HIPAA excepted benefits,” such as accident insurance and disability insurance.
  • Liability insurance.
  • Worker’s Compensation
  • Archer MSA amounts
  • Health Savings Accounts (HSAs)
  • Salary reductions for flexible spending accounts (FSAs)

Valentine says transitional relief treatment is available for:

  • Employers filing fewer than 250 Forms W-2 for the previous calendar year.
  • Multi-employer plans.
  • Health Reimbursement Arrangements.
  • Dental and vision plans that are not integrated into another group health plan.
  • Self-insured plans of employers not subject to COBRA continuation coverage or similar requirements.
  • Wellness benefits, employee assistance plans and on-site medical clinics, to the extent that the employer does not charge any amount to qualified beneficiaries for applicable COBRA continuation coverage or similar coverage.
  • Forms W-2 furnished to employees who terminate before the end of a calendar year and request a Form W-2 before the end of that year.
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Survey shows California healthcare costs rising, benefits shrinking

By Marc Lifsher, Los Angeles Times

January 4, 2012.

Fewer California companies offered their workers health insurance last year, and the ones that did charged employees more for their coverage.

That’s among the findings of an annual California Employer Health Benefits Survey released Wednesday by the California HealthCare Foundation, a research and grant-making nonprofit organization.

According to the survey, premiums for employer health insurance plans have risen 153.5% since 2002, a rate that’s more than five times the increase in California’s inflation rate.

In the last two years alone, the proportion of state employers offering coverage to workers fell to 63% from 73%, the survey said.

“This is a departure from previous years and could be an early sign of future changes,” the foundation report noted in commentary on data collected between July and October 2011 in interviews with 770 private firm benefit managers.

The steady rise in costs during a prolonged economic downturn contributed to decisions by about a quarter of employers to either reduce benefits or increase cost sharing for employees in 2011. A slightly smaller percentage, 22%, opted to make workers pay more of the share of the higher premiums.

Health insurance is expected to take even more money out of workers’ pockets this year. The survey indicated that 36% of California firms said they were either “very” or somewhat” likely to raise the amount that their staff paid in premiums in 2012.

Rising costs and shrinking coverage are accelerating, said Anthony Wright, executive director of Health Access California, a group that advocates for expanded health insurance coverage.

“They are frankly multi-decade trends,” he said. “What is notable is that this is more significant than usual.”

What’s been a “gradual erosion of employer-based coverage in good years” has evolved into “a steep one in bad years,” Wright said. “To be down to 63% [of California companies offering coverage] is huge. It used to be up over 80%.”

Patrick Johnston, president of the California Assn. of Health Plans, blamed the rising premiums on expensive technology, the spread of chronic disease and an aging population, among other factors. Johnston’s organization represents 40 California health plans that cover 21 million people.

What’s more, he noted that years of cutting reimbursements to doctors and hospitals by the government-run Medi-Cal program have created a “cost shift” that has to be “made up in negotiations for higher rates for commercial payers such as employers.”

Insurer profits, Johnston argued, are not a leading cost driver since publicly traded California insurers keep only 13 cents out of every premium dollar to pay for expenses and to secure earnings that average 3% to 5% of revenue.

Both Wright and Johnston predicted that full implementation of President Obama’s healthcare reform plan in 2014 could go a long way toward broadening coverage and to an eventual control of raging medical cost inflation.

“I hope that some of the reforms start to change the picture,” Wright said. “It’s clear that if we repeal [the law] or retreat back to the status quo, we will have some trends that simply are unsustainable.”

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Every Small Business Needs to Know About These Potential Regulatory Changes

Paychex Inc. released its list of the top 12 potential regulatory changes that small businesses need to know about in 2012. Paychex works closely with the IRS and other government agencies and is constantly monitoring regulatory and compliance-related matters.

• Health Coverage W2 – The IRS further delayed a requirement for smaller employers to report the cost of employer-sponsored health coverage on employee Forms W-2, indefinitely postponing it until further guidance is issued. However, employers that file 250 or more Forms W-2 in 2011 must include this cost on the W-2 starting in tax year 2012. The healthcare amounts reported on the W-2 will be strictly informational and not taxable to the employee.

• Healthcare Reform – The Supreme Court is expected to rule in 2012 on the constitutionality of the individual mandate provision in the Affordable Care Act.

• 401(k) – In 2012, 401(k) service providers will have to make additional fee disclosures to plan sponsors and plan sponsors will have to make additional fee disclosures to participants. Contribution limits will increase in 2012. Regulations will be enacted in 2012 or are under consideration to broaden the definition of a plan fiduciary, make investment advice more accessible to plan participants, and restrict the number of loans an employee can take from their 401(k).

• Job Creation – Congress passed legislation in 2011 to provide a tax credit for hiring veterans. The temporary reduction of employee payroll taxes was due to expire on December 31, 2011, but Congress extended the provision for two more months. A new recapture provision applies to employees who earn more than $18,350 during the two-month period.  The tax cut could extend through 2012, pending further negotiations. Congress is considering additional measures, such as earmarking funding for infrastructure projects and passing measures to help small businesses access capital.

• Worker Classification – IRS is allowing eligible employers to reclassify workers as employees in exchange for partial tax relief from past federal employment taxes. In late 2011, the Dept. of Labor agreed to work with the IRS and several states to coordinate enforcement. Legislation in several states to increase fines for worker misclassification may affect employers in 2012.

• Deficit Reduction – Proposed legislation focuses on reducing the deficit through spending reductions and tax increases. Many of the ideas involve reforming personal and business tax and closing of tax loopholes.

• Immigration – The federal government is conducting rigorous worksite enforcement and paperwork inspections of companies of all sizes to crack down on the employment of illegal immigrants. In 2012, state laws will require more private sector employers to use the federal E-verify system for employee verification. Also possible in 2012 are Congressional immigration reform proposals that may include additional federal employment verification obligations.

• Employment Law – Many states restrict employers from using an employee’s credit information in employment-related decisions or are considering these resrictions. The Dept. of Labor and many states have enacted or are considering regulations to provide greater transparency of pay checks. These regulations focus on how workers’ pay is calculated, especially as it relates to minimum wage and overtime requirements.

• Security and Privacy – Cybercrime and corporate bank account takeovers against small businesses are becoming more widespread. Employers should take security precautions, such as using stand-alone computers for online banking; not clicking on attachments or hyperlinks from unknown sources; and working with their bank to implement fraud detection tools on their accounts. Many states have enacted onerous privacy and security breach regulations.

• Dodd-Frank – The sweeping Dodd-Frank financial law is focused primarily on Wall Street reforms and consumer protection. However small businesses may face limited access to credit and higher costs of credit or other financial services because of the increased burden it places on some industries.

• Unemployment Insurance – Virtually all businesses will face higher unemployment insurance taxes if Congress reinstates the federal unemployment surtax. In many states, employers will see higher taxes because of the repayment of outstanding federal loans that were taken to continue paying benefits and replenish depleted state unemployment trust funds. Many states are cosidering additional employer reporting requirements to combat unemployment insurance fraud.

• Taxes – 2012 will bring a number of important tax changes including a higher Social Security wage base and changes to  assistance benefit limits. The accelerated depreciation benefits, which were in place in 2011, may expire or be scaled back in 2012. All employers will need to keep an eye on what are likely to be additional tax changes as the year progresses.

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Early Retiree Program to Employers: Bye

Officials at the Centers for Medicare and Medicaid Services (CMS) were right back in April when they predicted they would probably use up Early Retiree Reinsurance Program (ERRP) funding early.

CMS stopped taking ERRP applications in May because of concerns about lack of availability of funds, and now officials say in a new notice that ERRP probably will stop helping with claims incurred by the employers already using the program at the end of the year.

The drafters of the Patient Protection and Affordable Care Act  of 2010 (PPACA) created ERRP and provided $5 billion in ERRP funding in an effort to help the dwindling number of employers that still provide health coverage for retirees ages 50 to 64.

ERRP, which began taking applications in June 2010, has been reimbursing participating employers for 80% of the amount of claims costing between $15,000 and $90,000 for early retirees and early retirees’ spouses, surviving spouses and dependents.

The ERRP creators supporters were hoping ERRP would help keep coverage in place for early retirees until 2014. Early retirees cannot get Medicare coverage unless they qualify for Social Security Disability Insurance benefits, and, in states that allow medical underwriting, early retirees with health problems may have trouble qualifying for conventional commercial health coverage.

If PPACA provisions take effect as written and work as backers hope, carriers will still be able to charge older consumers more than they charge younger consumers in 2014, but they will not be able to use an individual’s health status when deciding whether to issue coverage or when setting rates.

Unless Congress provides additional funding, ERRP likely will end 2 years earlier than hoped, because the program already has spent $4.5 billion of its funding, CMS officials say.

Plan sponsors must not mix claims incurred after Dec. 31, 2011, with 2011 claims in ERRP reimbursement requests, officials say.

If circumstances change, and more funding surfaces, CMS may announce that it can help with some 2012 claims, officials say.

“If a claim is incurred on or before December 31, 2011, but paid after December 31, 2011, the sponsor may submit the claim, but not until it has been paid,” officials say.

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Physicians Are Pessimistic About Health Reform

Only 27 of doctors expect the Patient Protection and Affordable Care Act (PPACA) to reduce healthcare costs by increasing efficiency and only 33% expect it decrease disparities in healthcare access. In fact, half expect access to decrease because of hospital closures that result from the law, according to a study by the Deloitte Center for Health Solutions. Seventy-three percent of doctors are not excited about the future of medicine. Sixty-nine percent say that many of the best and brightest who might have considered a career in medicine will think otherwise.

Paul Keckley, Ph.D. of Deloitte said, “Physicians are resistant to reform and are frustrated with the direction of the profession. Understanding the view of the physician is fundamental to any attempt to change the health care model; this is the person prescribing the medicine, ordering the test and performing the surgery.” The negativity is driven in part by concern over the pressure primary doctors will face from millions of newly insured consumers seeking care and how it could affect the larger system. Doctors also fear that reform will mean a loss of autonomy and more costs and administrative burdens.

The study also reveals the following about doctors’ opinions:

  • Nearly three-quarters say that emergency rooms could get overwhelmed if primary care physician appointments are full as a result of the Patient Protection and Affordable Care Act.
  • More than 80% say that wait times for primary care appointments are likely to increase because of a lack of providers.  More than half say that other medical professionals (physician assistants, nurse practitioners) will deliver primary care both independently and in addition to physician services.
  • 57% of surgical specialists support repealing the health reform law compared to 38% of primary-care providers and 34% of non-surgical specialists.
  • 59% of physicians 50 to 59 years old say that PPACA is a step in the wrong direction compared to only 36% of those ages 25 to 39 share this sentiment. Younger physicians (ages 25 to 39) are also more likely than older doctors (ages 40 to 59) to think the transition to evidence-based medicine will improve care.
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GAO: States Were Quick to Implement PCIP

This article should be read by anyone applying for individual health insurance coverage, with a pre-existing condition sever enough to cause a decline or high rating by an insurance company.In California anyone can obtain health insurance coverage, the only question is the premium. – John Barrett

By Allison Bell – December 13, 2011

The painful birth of the federal Pre-Existing Condition Insurance Plan (PCIP) program — a health insurance program for people with health problems — may be due more to restrictions imposed by Congress than major problems with implementation.

John Dicken, a director at the U.S. Government Accountability Office (GAO), gives that assessment in a PCIP review requested by Senate Democrats. The senators asked the GAO to compare the early progress of the PCIP program to the early progress of the Children’s Health Insurance Plan (CHIP) program.

Dicken notes that Congress tried to keep PCIP risk pool coverage from crowding out existing public and private sources of coverage for people with health problems by requiring that PCIP applicants be uninsured for at least 6 months.

The 1997 law creating CHIP does not include any specific methods for excluding children who already have other health coverage, Dicken writes.

The 6-month no-coverage requirement for PCIP applicants is “the most common factor explaining lower than expected enrollment cited by the state PCIP officials we interviewed,” Dicken says.

Because of the requirements spelled out in the law that created the PCIP program, PCIP coverage costs an average of about $400 per month for a 50-year-old applicant, and the cost of the coverage is another reason for slow early enrollment growth, Dicken says.

“In contrast, many states did not charge any CHIP premiums, and among those states that did, premiums were significantly lower compared to PCIP,” Dicken says.

Congress added the law that created the PCIP program to the Patient Protection and Affordable Care Act of 2010 (PPACA) in an effort to provide immediate relief for people who have a hard time buying health coverage because they have conditions such as obesity, high blood pressure, cancer or hemophilia.

If PPACA takes effect on schedule and works as drafters expect, it will require insurers to start selling subsidized coverage on a guaranteed issue, mostly community-rated basis in 2014.

PPACA calls for PCIP to provide comprehensive health coverage for people with health problems for a price similar to the price healthy individuals pay for ordinary commercial health coverage.

Eligibility is not based on income, and the risk pools cannot charge higher rates for people with more severe health problems.

Congress let states choose between running PCIP risk pools themselves or letting the U.S. Department of Health and Human Services (HHS) provide PCIP risk pool services for their residents.

Program critics originally predicted that millions of uninsured Americans with health problems would rush to enroll in the program and quickly use up federal PCIP funding.

Analysts at the Congressional Budget Office (CBO) predicted the $5 billion in funding allocated for the program could accommodate about 200,000 people.

At the end of August, only about 34,000 people were enrolled in the program.

When the CHIP law was passed, CBO analysts estimated that the program would provide coverage for about 2.3 million children after 1999. After CHIP was in effect for about a year, the program had 705,000 enrollees.

States took about 3 years to implement CHIP and just 7 months to implement PCIP, Dicken says.

States with their own high-risk pool programs started their PCIPs faster than states without existing risk pool programs, but PCIP enrollment in the states with state risk pools was just 3.7 enrollees per 10,000 uninsured lives, compared with 5.5 enrollees per 10,000 uninsured lives in states that started with no state risk pools, Dicken says.

 

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Choking on Obamacare

By George F. Will, Published: December 2

In 1941, Carl Karcher was a 24-year-old truck driver for a bakery. Impressed by the large numbers of buns he was delivering, he scrounged up $326 to buy a hot dog cart across from a Goodyear plant. And the war came.

so did millions of defense industry workers and their cars. And, soon, Southern California’s contribution to American cuisine — fast food. Including, eventually, hundreds of Carl’s Jr. restaurants. Karcher died in 2008, but his legacy, CKE Restaurants, survives. It would thrive, says CEO Andy Puzder, but for government’s comprehensive campaign against job creation.

CKE, with more than 3,200 restaurants (Carl’s Jr. and Hardee’s), has created 70,000 jobs, 21,000 directly and 49,000 with franchisees. The growth of those numbers will be inhibited by — among many government measures — Obama­care.

When CKE’s health-care advisers, citing Obamacare’s complexities, opacities and uncertainties, said that it would add between $7.3 million and $35.1 million to the company’s $12 million health-care costs in 2010, Puzder said: I need a number I can plan with. They guessed $18 million — twice what CKE spent last year building new restaurants. Obamacare must mean fewer restaurants.

And therefore fewer jobs. Each restaurant creates, on average, 25 jobs — and as much as 3.5 times that number of jobs in the community. (CKE spends about $1 billion a year on food and paper products, $175 million on advertising, $33 million on maintenance, etc.)

Puzder laughs about the liberal theory that businesses are not investing because they want to “punish Obama.” Rising health-care costs are, he says, just one uncertainty inhibiting expansion. Others are government policies raising fuel costs, which infect everything from air conditioning to the cost (including deliveries) of supplies, and the threat that the National Labor Relations Board will use regulations to impose something like “card check” in place of secret-ballot unionization elections.

CKE has about 720 California restaurants, in which 84 percent of the managers are minorities and 67 percent are women. CKE has, however, all but stopped building restaurants in this state because approvals and permits for establishing them can take up to two years, compared to as little as six weeks in Texas, and the cost to build one is $100,000 more than in Texas, where CKE is planning to open 300 new restaurants this decade.

CKE restaurants have 95 percent employee turnover in a year — not bad in this industry — and the health-care benefits under CKE’s current “mini-med” plans are capped in a way that makes them illegal under Obamacare. So CKE will have to convert many full-time employees to part-timers to limit the growth of its burdens under Obamacare.

In an economic climate of increasing uncertainties, Puzder says, one certainty is that many businesses now marginally profitable will disappear when Obamacare causes that margin to disappear. A second certainty is that “employers everywhere will be looking to reduce labor content in their business models as Obamacare makes employees unambiguously more expensive.”

According to the U.S. Small Business Administration, by 2008 the cost of federal regulations had reached $1.75 trillion. That was 14 percent of national income unavailable for job-creating investments. And that was more than 11,000 regulations ago.

Seventy years ago, the local health department complained that Karcher’s hot dog cart had no restroom facilities. He got help from a nearby gas station. A state agency made him pay $15 for workers’ compensation insurance. Another agency said that he owed more than the $326 cost of the cart in back sales taxes. For $100, a lawyer successfully argued that Karcher did not because his customers ate their hot dogs off the premises.

Time was, American businesses could surmount such regulatory officiousness. But government’s metabolic urge to boss people around has grown exponentially and today CKE’s California restaurants are governed by 57 categories of regulations. One compels employees and even managers to take breaks during the busiest hours, lest one of California’s 200,000 lawyers comes trolling for business at the expense of business.

Barack Obama has written that during his very brief sojourn in the private sector he felt like “a spy behind enemy lines.” Puzder knows what it feels like when gargantuan government is composed of multitudes of regulators who regard business as the enemy. And 22.9 million Americans who are unemployed, underemployed or too discouraged to look for employment know what it feels like to be collateral damage in the regulatory state’s war on business.

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