IFA Execs Weigh in on Obamacare

By RENEE LEE The Patient Protection and Affordable Care Act, known also as Obamacare or the ACA, was signed in March 2010. Just a few months ago in June, the United States Supreme Court upheld the constitutionality of the majority of the act. Many provisions have already been put in place, with the rest scheduled to roll out over the next several years. With the upcoming changes to healthcare come effects that will trickle through to an important part of the economy: small businesses and franchises. The International Franchise Association is the oldest and largest representative organization of franchises across all industries. With small business and franchising bearing the brunt from the healthcare law, representatives at the IFA have a particularly strong stance on the subject. Stephen Caldeira, CEO and President of the IFA, believes the act will threaten millions of full-time jobs in the franchise industry due to the increased healthcare costs that small business owners won’t be able to absorb. According to an IFA-commissioned study by the Hudson Institute, a D.C.-based think tank and public policy research organization, the ACA puts 3.2 million full-time jobs at franchise establishments at risk, and will cost $6.4 billion for the industry, not including compliance costs. Furthermore, Caldeira says the law disincentivizes the creation of new jobs and business expansion, two things which most people can agree the county is in dire need of. Judith Thorman, Senior Vice President of Government Relations & Public Policy for the IFA, agrees with Caldeira. She says it’s very likely companies will have to change the way they operate to keep up with health care provisions, but even so, alternatives such as making full-time employees to part-time aren’t very attractive. “This will impact far more than just the owners of the 825,000 franchise establishments nationwide,” Thorman says. “It will have a negative impact on each of the nearly 18 million Americans whose jobs are supported by franchising.” Thorman and Caldeira advise those in franchising to start planning to accommodate the provisions of the healthcare law. They also urge everyone to vote in the upcoming election to make a difference in leaders that will be deciding on issues affecting small business. As for how Obamacare can be revised to better help franchises, Thorman and Caldeira say a complete repeal of the ACA would be the most important step that could be made. Aside from that, changes must be made to ease the burden on small businesses and franchises everywhere.