Health law effects remain a question

With the presidential election looming, Chapel Hill business owners are questioning the future of the Affordable Care Act.

About 50 businesses attended a Friday event hosted by the Chapel Hill-Carrboro Chamber of Commerce to discuss parts of the act that will go into effect in 2014.

The act — which was upheld by the U.S. Supreme Court in June — seeks to expand health care coverage through the creation of a national insurance program.

The law has been debated by both presidential candidates and business owners — many of whom will be required to provide insurance coverage to employees starting in 2014.

Aaron Nelson, president and CEO of the chamber, said the goal of the meeting was to keep businesses informed of the ways the federal legislation will impact their careers.

“It’s time to start paying attention,” he said.

Since most businesses in Chapel Hill are small, Nelson said the changes will likely not affect them.
Under the law, only companies with more than 50 full-time employees will be required to provide health insurance, or pay a fee.

Nelson added that some businesses won’t see insurance costs increase since many part-time employees in Chapel Hill are students and are required to have insurance.

Margot Carmichael Lester, who owns the Carrboro public relations firm The Word Factory, said she is not concerned with the law.

“My business is micro. It’s just my husband and me, so the ACA isn’t an issue for us,” she said.

But Top of the Hill owner Scott Maitland — who employees 125 people — worries the new mandate for large businesses could create a business climate where employers are afraid to hire because of the costs of insuring them.

He said he thinks the goals of the law are good, but it was poorly written.

“Anytime you have a law that’s over a page it becomes very difficult,” he said.

Companies that employ less than 25 people and provide health insurance are eligible for a tax credit of 35 percent. The credit will increase to 50 percent in 2014.

But even a tax credit isn’t enough to persuade some local business owners.

Bruce Ballentine, president of the civil engineering firm Ballentine Associates, P.A., said he doesn’t value the credit, which he says will increase other people’s premiums.

“If we get a tax credit, someone has to pay for it,” he said. “Nothing the government does is free.”

And Maitland said there is still much uncertainty about the future of the act. Republican presidential candidate Mitt Romney has said if he wins, he will repeal it.

“We have no idea what’s really going to happen,” Maitland said.

Contact the desk editor at city@dailytarheel.com.