Small businesses are somewhat resilient when it comes to dealing with state and federal regulations, and to a certain extent, large businesses can deal with the new rules and rule changes a bit more effectively since they can absorb additional costs across different business areas. What small and large businesses both have more difficulty with is regulation uncertainty.
What it comes down to is this … how the heck are small business owners and leaders in large corporations supposed to make sound business decisions – sometimes as far out as three or four years – when they have no idea what the rules will be?
Check out the post by Frank Ryan over at American Thinker this morning.
When there is significant uncertainty caused by a rapidly changing regulatory environment, such as in health care and financial services, economic activity will be severely curtailed until that uncertainty is removed. The final regulations, if too cumbersome, may be the final blow to an already fragile economy.
How can it be worse for business and industry in the United States? Even though the bills are passed, we still do not know what the new regulations will do, how they will be implemented, or even what companies will be able to do, or not do.
Some fruitcakes said we had to wait to pass the legislation to see what’s in the legislation and how it will work. Pure genius I tell ya!
A perfect example is the health care legislation and how it was going to effect – or not effect – McDonald’s mini-med health care plans. Since the plans would not meet the medical loss ratio (MLR) requirements under the new health care legislation, McDonald’s – or whomever – suggested up to 30,000 employees with this coverage may not have future access to the health plans currently offered. It would be cost-prohibitive for McDonald’s to tweak the coverage and ensure they met the MLR requirement.
Of course, that same day, both McDonald’s and Obamacare representatives suggested there really was no problem at all. Oh really? Then why – within 24 hours – did the White House pledge to use their discretion and be flexible with the mini-med plans offered by chains like McDonald’s who mostly have part-time hourly workers?
From the Wall Street Journal on Oct. 1.
The Obama administration said Thursday that its top health official will “exercise her discretion” in enforcing a new health-law requirement, a move that could help McDonald’s Corp. and other employers from disrupting their health-care policies for hourly workers. …
On Thursday, administration officials indicated they are hopeful that HHS Secretary Kathleen Sebelius will be able to allow certain waivers to the requirement, but that it was too early to confirm they will. She must wait for guidance from state insurance commissioners, and the administration doesn’t expect to release the agency’s final guidance until December. The agency said the law gives Ms. Sebelius discretion to apply the requirement.
So the Obama administration can apply – or not apply – the law at it’s discretion? Two thousand-plus pages of garbage federal law that nobody has read or understands … and this is what we get. Just another symptom of the disease.
Hat tip to Sweetness & Light.
Update: Michelle Malkin notes the flood of waivers issued at the beginning of this month includes the United Federation of Teachers Welfare Fund, a New York union providing coverage for city teachers.