The Richmond Register

Local News

August 28, 2013

Business owners, residents testify on the possible effects of Obamacare

LEXINGTON — On Tuesday, a congressional field hearing was conducted in Lexington concerning how the new health care law will affect job creators and others in Kentucky.

Several Kentucky members of Congress were part of the subcommittee hearing, including Rep. Andy Barr, who represents Richmond as part of the Sixth District.

Wednesday’s edition of the Register featured an article focusing on the testimony of John McPhearson, CEO of Madison County’s Lectrodryer plant.

The testimony of the other seven panelists is featured into today’s paper.

Tim Kanaly, owner and president of Gary Force Honda in Bowling Green and Dixie Car Sales in Louisville:

Kanaly testified that he has struggled with understanding what new requirements his companies will face the Affordable Care Act. His two businesses individually have less than 50 full-time employees, but together they have more than 50.

The law requires that businesses with more than 50 full-time employees offer them health insurance or face a penalty.

Kanaly said he currently offers his employees in Bowling Green health insurance, but the Louisville business is new and he cannot, at this time, offer the benefit.

Kanaly testified that he talked to his insurance agent, accountant and even contacted Rep. Brett Guthrie’s office but has yet to find a definite answer.

“It concerns me deeply that no one can answer my basic question,” Kanaly said.

Joe Bologna, owner of Joe Bologna’s Italian Pizzeria & Restaurant:

Bologna said he has “always cared about  his employees,” and he has offered health insurance to his full-time employees. About 10 are using that benefit, he told the congressmen.

However, because of the downturn in the economy, more people are choosing to save money by not eating out. This has hurt his restaurant’s profits, he said.

Bologna has cut back on employees and since April has closed his restaurant on Mondays. He also said he will not hire more than 50 full-time employees so as not to be subject to the ACA’s requirement to offer all workers with more than 30  hours a week health insurance.

“I feel Affordable Care (Act) causes less jobs,” Bologna said.

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