How to Start a Business

The Health Care Debate is certainly waging across the country – we’ve all heard that there is talk of a Christmas Eve vote (stupid), crazy filibuster schemes (necessary), and passionate (& crazy) people on both sides of the aisle.

Small business has come up in the debate. Are we represented? Will anything done benefit us?  We came across a interesting article in the NY Times today:

NY Times:  Talking Health Care with Two Entrepreneurs in Congress

We’ll be blogging on it shortly.  Also, check John Stossel’s show tonight:

http://stossel.blogs.foxbusiness.com/2009/12/17/tonight’s-show-8pm-et-5pm-pt-the-real-problem-with-health-care/

Related posts:

1. Health Care from the Inside
2. Health Care Reform
3. Obama on Health Care and Such Attention on Small Business
4. Health Insurance for Entrepreneurs
5. Ayn Rand “Atlas Shrugged” on John Stossel Tonight – You MUST Watch This

2 Comments

1.   Mark Reynolds   |  Friday, 18 December 2009 at 12:19 am

   This problem is very difficult to solve because of the bureaucratic mindset of most businessmen. They tend to overlook the health care problem that is occurring in their company. They are more into getting much money rather than thinking the health benefits of their employee. I hope this article will serve as an eye opener for them.

   
2.   Jacob Dearolph   |  Friday, 18 December 2009 at 2:21 pm

   Interesting to think that the bureaucratic mindset of “businessmen” is a hindering point to solving health care. I’m curious to learn what you mean by the health care problem in their company. To me a person who owns and/or manages a company sees the problem with health care as a problem external to the company that impacts them internally (inside the company).

   Breaking down what I mean by externally and internally:
   - External – Health Insurance is something that is provided by a health insurance company to said business for the purpose of insuring said company’s employees. The policies provided are usually based on risk actuary tables, state guidelines and competitive forces in the insurance industry. I believe they are secondarily impacted by inefficiencies and market imbalances caused by medicaid and medicare.
   - Internal – So the plans are purchased by said company for use inside the company. The company’s purpose is to provide a widget or a service to a market of people at a certain price and by the discretion of an owner. Now the owners of said company can choose to do whatever they want with the company. Their choices will guide success or failure and as owners either is their choice. Given human nature most owners want to make a certain amount of money and thus, they will manage the company to hit those numbers. A great number of managers are held accountable by different owners to make or hit certain numbers. These owners/managers given their makeup, values, etc… will balance managing the business financially with serving the people working in the company. So the internal impact of health insurance is primarily seen as a cost to be managed and minimized. There are limitations to what a business can do in the provision of health insurance. Over the last few years health insurance costs have been far out pacing inflation and business growth.

   So the external forces of the health care debate have internally impacted companies. To the people employed by the companies they don’t necessarily always know or understand the cost increases to the company as a whole. They only see that their plans are constantly changing and in many cases services are declining.

   So the owners are now assumed to be “evil.” Why is the guy/gal who got an idea, took a risk (of his time and capital), worked his/her butt off, managed a business, hired people now assumed “evil” because he/she is trying to MANAGE THE RESOURCES OF HIS/HER BUSINESS THE WAY THEY WANT TO. For example, I have a friend who manages a business that he has an equity share in. The health insurance costs for his employees is the 3rd highest cost in the business. It has increased and the services provided by the insurance companies has declined. He told me that had insurance costs not increased everyone (him, the owner, and the employees) would have gone home with more money at the end of the year.

   So the owners of said business are challenged and frustrated by the increased financial burden of health insurance, the declination of services and the resulting impact on its people.