Affordable Care Act gets Mixed Reviews - Cleveland Plain Dealer

Published: Tuesday, March 22, 2011, 6:01 AM Updated: Tuesday, March 22, 2011, 9:18 AM

CLEVELAND, Ohio -- Wednesday will mark one year since President Barack Obama signed his new health care plan into law -- an act met then with both cheers and jeers across the country.

On Monday in Cleveland, a couple of small business owners told the president's top health official about their own mixed results from the effects of the law, officially known as the Patient Protection and Affordable Care Act.

More than 30 small business owners met with U.S. Department of Health and Human Services Secretary Kathleen Sebelius at Coleman Spohn Corp., a Cleveland mechanical contractor.

One of them, David Harper, owner of Harper Engineering in Cleveland -- which has seven full-time employees and one part-time worker -- said he is getting $3,000 back from the government this year as a result of the new health care plan. He said he plans to use that money to buy computer equipment.

Coverage expected in industry

Harper's firm, which specializes in telecom facilities design, offers full insurance for quality engineers, knowing larger companies do not.

"You can't hire without offering medical coverage . . . it's expected in the industry," he said. "I want to keep them working for me, but our insurance rates have skyrocketed since 2003, and I've had to raise deductibles. I'm finally getting some relief."

But the owner of Coleman Spohn, Monday's host, hasn't experienced the same relief because his company is too large -- with 65 field workers and 20 management employees -- to get money back.

Small businesses are defined as companies with fewer than 25 full-time employees and with annual wages not exceeding $50,000 per worker. They can get a 2010 federal tax credit for up to 35 percent of their health care premium expenses.

"I've prided myself in paying full insurance for all our employees," said Lonzo Coleman, president of the company.

Care costs have doubled

"But health care costs have doubled since 2007, and I told Secretary Sebelius I'm afraid health care costs will make us noncompetitive in keeping or hiring valued employees unless something is done.

"Right now, it's up to me to find a creative way to keep health care costs contained."

Sebelius, who grew up in Cincinnati and lived in Columbus when her father, John Gilligan, was governor, said small businesses need relief from the excessive rate hikes issued by established health care companies.

She told the group that more than 150,000 small business owners in Ohio are eligible for tax credits.

"Small business is the fastest-growing business sector in the country," Sebelius said. "Whether it's health cost increases, paperwork, overhead, or limitations these concerns are typical of what we hear across the country . . . but help is coming."