Pirate's Cove

That’s right, another “unintended consequence”

(WSJ) Here’s something your orthodontist is not smiling about: a new tax rule raised the cost of braces this year.

Thanks to a change from the Affordable Care Act that places an annual $2,500 contribution cap on flexible spending accounts, which let workers set aside pre-tax dollars to cover medical expenses, some consumers may be spending more on braces, expensive eyewear and other medical supplies they would typically buy with the accounts. Before the new rule, there was no official cap on how much taxpayers could stash into the account, though many companies typically set their own limits of $5,000. For a person in the 25% tax bracket, the cap cuts the maximum tax break in half to $625 from $1,250.

For families who relied on the accounts to help them cover the costs of pricey medical services like braces, the cap indirectly raises their costs, says Gayle Glenn, president of the American Association of Orthodontists, which along with some other medical groups is calling for the cap to be eliminated. About 65% of the roughly 17,000 orthodontists surveyed by the association in 2009 said their patients used FSAs to pay for treatment. And with the cost of braces ranging from $5,000 to $7,000, many families likely max out their FSA contributions to pay for them, says Glenn, whose association recently circulated a letter for orthodontists to publish in their local newspapers, encouraging people to write to Congress to challenge the cap. “We want people to be aware,” says Glenn.

I had been aware of the cap on health savings accounts ($2500), but did not know about the FSA restrictions (articles on the difference here and here). And Obamacare is messing both up. Thanks, Democrats!

Read: Good News: Obamacare To Raise Cost Of Your Kids’ Braces »

Gee, if only someone had predicted that something like this could happen going back to the time before the “Affordable” Care Act was passed. This was information that people really needed! Interestingly, this survey is mostly being ignored by the national media. Nationally, I can only find an article by CBS News and a blog post with a short blurb at the Wall Street Journal

(WRAL) Corporate financial chiefs say they expect to reduce hiring and also move more jobs to part-time status as a result of the Affordable Care Act, according to a new survey from Duke University and CFO Magazine.

Many companies also are considering a reduction in health care benefits for employees.

“The results were startling to us. This will significantly impact employment,” said Campbell Harvey, a professor of finance at Duke’s Fuqua School of Business. “I think the people who drafted the bill probably never anticipated such a negative effect on employment, especially in a time when we really need employment growth.”

Those who crafted, supported, and voted for the ACA might not have anticipated it, but opponents of Democrat health care/insurance “reform” talked about it and predicted it quite a bit. And noted it after passage. And noted the move of so many to part time when HHS released the rules as to what is considered full time. And noted that the economy was partially stuck thanks to Obamacare (oops, that’s a raaaaacist word).

Almost half of the 500 companies surveyed are “reluctant” to hire full-time employees, the survey found, and one in 10 may lay off current employees in response to the law.

More than 40 percent of CFOs surveyed say their companies will consider switching some full-time jobs to part-time jobs in 2014.

“Unintended consequences” or something. Then there’s this from the Duke School of Business, which performed the survey, but is not mentioned in any of the articles on the survey from news organizations

In addition, 44 percent of companies say they will consider reducing health benefits to current employees in response to the ACA.

My, my, my, this law is working out really well, wouldn’t you say?

Crossed at Right Wing News.

Read: Duke Survey Shows Obamacare To Damage U.S. Employment And Health Benefits »