TYLER (KYTX) - Some local business owners say the Affordable Care Act will hurt their bottom lines when it fully goes into effect in 2014, and some are taking action now.
Cici's Pizza restaurants in Tyler are under new ownership. After 18 years, owner and operator Bob Westbrook says he had to throw in the towel and sell them off because he says the Affordable Care Act just isn't affordable, and others agree.
"It was a tough decision. It was a business decision though." says Westbrook.
Former Cici's franchisee Bob Westbrook says after the Supreme Court approved President Obama's health care plan, he did the math with his trade association. Westbrook says the plan known as Obamacare requires him to provide health coverage to about 80% of his employees, or pay $2,500 per year for each of them. Westbrook says he had to downsize in order to avoid the fee and make a profit.
"We needed to get down below 50 employees. And, in doing that, we needed to get rid of two of our stores."
Westbrook still owns a Cici's Pizza restaurant in Longview, but now he's under the employee limit required to pay the taxes.
Westbrook says the news came as a shock to many of his employees.
"They were extremely saddened to see the family break up." he says.
Dr. Robert Phelps with Foot Clinic of East Texas says he's seen the adverse effects for patients and himself as a business owner.
"In the way of increased insurance policy rates, decrease in reimbursement, decrease in coverage of patients, and then, deductibles have gone through the roof." says Dr. Phelps.
And he's concerned about his business.
"It's looking like either going to get out of medicine or stop taking Medicare altogether. And, I don't think anybody knows what's in the future for doctors as far as Obamacare goes."
No business owners we spoke with Thursday favor Obamacare, but those who do support it point to tax credits built into the plan to help small businesses insure their employees. It also provides funding to help employers pay for insurance for retirees who aren't yet eligible for Medicare.
Westbrook says he has plans to open a new restaurant, but that will depend on the outcome of the election and any impact that may have on the Affordable Care Act.
