Health Care Law Costs Result in Lost Job

Many have argued that the Healthcare Reform Law enacted in 2010 will result in job losses due to increased costs. Those that support Healthcare reform disagree. You may have already heard that very large employers like Boeing, Inc and Caterpillar Tractor have said that they will either, reduce jobs, reduce benefits, or completely do away with benefits for their employees.

I read an article today that this effect is occurring right here in Northwest Arkansas. Baldor Electric, of Ft. Smith, has estimated that healthcare costs related to the reform will increase by $2.9 million in the first year. U.S. Rep. Steve Womack, speaking from the U.S. House floor said “Baldor is an example of a company planning to reduce workforce to absorb higher healthcare costs related to the implementation of the new law. How does a company like Baldor absorb that cost? By further automating its processes and thru attrition, allowing 50 jobs to disappear.”

I look for this to be a trend that will continue. More and more of the components of reform are having the actual costs attached and employers are starting to recognize the impact to their bottom line.