Nevada businesses wait to see impact from health care ruling

Yawning and yelling.

That was the response from businesses and business groups in Southern Nevada after the Supreme Court upheld most of the federal health care law. Some companies greeted the news with a ho-hum - business as usual. Others fret the act will kill hiring, especially by small businesses.

Health companies said they plan to work within the terms of regulations upheld by the court. Representatives of Sunrise Hospital and Sunrise Children's Hospital said they're moving ahead in implementing the law, and they focused on its benefits.

"We will continue to work with patients, payers and the government to ensure a smooth transition as the provisions of the law are enacted," the hospitals stated. "We are pleased that millions of Americans will have coverage for better access to vital medical services, preventive care and acute care."

Nevada's second-largest insurer said it would continue to comply with federal coverage laws and look for savings.

Anthem Blue Cross and Blue Shield, which has 275,000 members in Nevada, said it would partner with primary care physicians to cut costs up to 20 percent by 2015 and to have health coaches work with patients to manage chronic conditions, among other changes.

"The road to implementing health care reform will be a challenge. However, we look forward to working constructively with policymakers and other key stakeholders to build a health care delivery system that provides security and affordability to all Americans," the company said in a statement.

But Randi Thompson, director of the Nevada chapter of the National Federation of Independent Business, which was a plaintiff in Thursday's case, said the law doesn't provide security or affordability, particularly for small companies.

The law applies to companies with the equivalent of 50 or more full-time workers. Affected businesses must cover at least 60 percent of staffers' health expenses, and they can't require employees to pay more than 9.5 percent of family income for coverage. Businesses that don't comply face penalties starting at $2,000 in 2014. Companies could also see penalties for offering coverage considered unaffordable.

With so many rules to be written before the law is in full effect, and with no clarity on costs per worker, there's too much uncertainty for hiring, Thompson said. Health premiums have skyrocketed since the law's 2010 passage, and that's disconcerting to businesses. Moreover, Thompson said, several business owners have said they plan to avoid mandates by having no more than 49 employees.

Willan Johnson, who owns VivoPools, a pool cleaning service in Nevada, California, Arizona and Florida, said he put off buying insurance until the ruling came down. Now he's going to wait to see how the law is implemented.

"We would love to do something sooner, but we have to be realistic and figure out what we can do, given the economy and the state of overall business. We need to better understand what the alternatives are," Johnson said.

David Dahan, co-owner and CEO of Las Vegas insurance broker Orgill/Singer, said his clients are confused but know one thing for certain: The new rules will cost them. "This is just a burden, no matter which way it comes down," Dahan said. "It will be brought into the economy and prices will go up on everything. Somebody's got to pay for it."

Thompson said federation members want to know what the next step will be.

"I'm telling them we're going back to Congress," she said. "Now that this tax has been called a tax, we see people coming back and saying, 'Repeal or revise it.' We know this law is intensely disliked by a majority of Americans, though we also know that we do need to make health care more affordable and accessible."

Health care stocks posted mixed results. Hospital shares jumped as investors foresaw millions more paying customers, while health insurer stocks fell over cost concerns. Hospital Corp. of America, the Tennessee-based parent company of Sunrise hospitals, saw shares jump 10.75 percent Thursday to close at $29.47 on the New York Stock Exchange. Shares of WellPoint, Anthem's parent, fell 5.2 percent to close at $65.90 on the New York Stock Exchange.

The Associated Press contributed to this report. Contact reporter Jennifer Robison at jrobison@reviewjournal. com or 702-380-4512. Follow @J_Robison1 on Twitter.