Health Care Bill Sees Mixed Emotions in Outdoor and Active Lifestyle Industry

 

That was the finding of a recent SGB Question e-mail blast to SportsOneSource subscribers asking, “How do you see the new healthcare bill passed by Congress affecting your business?” The wide range of answers across the more than 50 responses underscored how divisive the issue is playing out across the country.

 

At one extreme, some said the bill constitutes the ongoing push by the Obama administration toward socialism and fretted about any further government growth. Many were particularly concerned about the impact on the economy as businesses absorb the cost of supporting uninsured Americans. Brian Dani, owner of CBS Boardshop in Lake Forest, CA said, “This is a job killer, and anti-business that will affect all retail negatively.”

 

But some are hoping that the bill eventually leads to more affordable healthcare options. Denise M. DAmour, president of Capitol Hill Bikes in Washington, D.C., said she had made the decision to discontinue her store’s health insurance policy to its small staff. But she is hopeful that the new bill will help her find insurance at reduced rates by purchasing through a broader pool. “It’s a great help to my small business” said DAmour.

 

Moreover, some believe the U.S. has to do something to cap medical expenses. Alex Frank, president of the consulting firm Francorp, noted that the U.S. spends 17% of GDP on healthcare, well above other nations. “The healthcare bill may not be a panacea – it’s virtually modeled point-by-point on what Nixon advocated in 1974 – but it’s a step in a direction that we should have taken long ago,” said Frank.

 

“Why does the USA economy spend 50-100% more than our OECD competitor countries PER CAPITA and still rank 27th in health outcomes?,” rhetorically asked Ron Sutton, president at Accusplit, the pedometer and stopwatch manufacturer,. “There must be some real answers that are not made up fear-mongering.”

 

Said one anonymous store owner ruefully, “The health care situation in this country could not be worse. The new bill will either help us or not affect us. It certainly will not hurt us.”

 

Still, many outdoor companies dont see any impact on their business. Keith Baker, co-owner of The Trailhead in Buena Vista, Colorado, likewise said his store already provides coverage. “Well be happy to get a tax benefit for what’s simply the right thing to do,” says Baker.

 

“Perhaps now some big boxes who pay their staff or schedule them so little that they qualify for public assistance programs (i.e., public assistance is their “benefits package”) will do the right thing, too.”

 

But a few businesses were already pondering layoffs. An owner of a sports equipment start-up said, “I will most likely reduce my staff in order to prevent having to pay fines and penalties; either that or close the doors.”

 

Billy Hughes, CEO of Accelerated Sales & Marketing, said, “Demand of providing coverage, cost of coverage, tax implications, etc. I think this will add 15% to cost of employment. Once determined, we will make adjustments to reflect the change.”

 

Jennifer Curley, president at Inverness Ski Shop in Waitsfield , VT, said the bill doesnt appear to cover part-time employees and she suspects many companies will move to shift their full-time employees to part time. Also, with mandates of businesses with 50 or more employees to provide coverage, she believes many companies around that size will reduce their employee count to 49. “Where does the money come from to pay for health insurance for ALL of these people?,” said Curley. “And, if it is mandated on the part time employee, are we going to become a nation of independent contractors? I would like the IRS to figure out that one.”

 

Bill Sells, VP, Government Relations, SGMA, said the healthcare bill failed to address one of the biggest contributors to health care costs in America: sedentary lifestyles. “Active people have fewer major health issues and a lower incidence of chronic illness, yet the bill does nothing to promote active lifestyles,” said Sells. “If we are serious about resolving our healthcare problem, we need to make prevention of illness a priority.”

 

William Nuttall, president of Diadora America, believes it’s too soon to tell. “I believe it will take months to get a handle on the true impact to small businesses and I am cautiously optimistic that the new bill will not cripple the small business operator,” said Nuttall.