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Members In The News

Date: April 28, 2014

Noon, Scandrett discuss difficult decisions on complying with the Affordable Care Act

In a Sunday-edition article about the decisions that go into complying with the Affordable Care Act, the Denver Post quoted NFIB/Colorado Leadership Council Members Jim Noon and Mike Scandrett, with an additional remark from NFIB State Director Tony Gagliardi.

Noon is owner of Centennial Container in Denver; Scandrett is executive vice president of Scandvic Enterprises in Colorado Springs.

“No one tells the small-business story better than NFIB members,” said Gagliardi. “By the very fact they’ve chosen to be members, they have a heightened interest in the affairs of Main Street, making them the smartest entrepreneurs around. Whether they are testifying before a legislative committee on a small-business issue or talking to the media, no group of people command more respect and are paid more attention to than NFIB-member, small-business owners.”

Highlights from the Denver Post article include:

  • “Late last year, Noon received an early renewal offer from his insurance company that will be good through the end of the year with an 8.6 percent premium increase. To get a policy compliant with Affordable Care Act requirements — one that covers birth control, which his current plan doesn't — would have cost Noon 50 percent more, according to documents Noon provided from his broker. ‘I hate to be paying double the rates doing it as an employer if people can go to the exchange (as individuals) and pay less and qualify for subsidies,’ he said.”
  • “About half of small businesses in Colorado are seeing double-digit premium increases under the ACA while the other half are seeing the typical single-digit increases they have had for years, said Jim Sugden, small-business marketplace manager for the state exchange. He was not surprised that some companies are getting out of providing health insurance for employees.”
  • “Rule changes are one of the biggest complaints small businesses have about the ACA. "In general, there's so much uncertainty," said Tony Gagliardi, state director of the Colorado Federation of Independent Business. ‘Every day when we turn on the news, there's a change.’ ”
  • The changing rules and increasing costs led Colorado Springs insulation company Scandvic Enterprises to drop health insurance for its employees after providing it for 20 years. ‘We decided that we're out of it,’ said executive vice president Mike Scandrett. ‘It's up to the guys to take care of it.’ Scandvic offered to subsidize health care for his employees by increasing their salaries if they went to the exchange, but so far none have taken him up on the offer. ‘I would say we're saving money because of it, but it's not the way we wanted to do it,’ he said. ‘We wanted to pay for their coverage.’ ”
The full Denver Post article can be read here.

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He was not surprised that some companies are getting out of providing health insurance for employees.