The federal government's health care overhaul has touched off a pandemic of fear, anger and confusion that has already spread among Alabama businesses.

Government officials and others have said most large companies will see no major side effects from the changes, except for added paperwork and a need to be aware of applicable tax credits and potential fines.

Small businesses face more radical changes. Firms with 50 or more employees, including part-time workers, now will have to provide insurance for their employees, or face stiff fines.

"This is a devastating blow to small business because we are going to bear the brunt of the taxes and penalties," said Rosemary Elebash, Alabama director for the National Federation of Independent Business. "So many things stick out as being onerous to small business. We're the job creators, particularly in Alabama."

The 50 employee standard is one of the most troubling aspects of the overhaul, according to Franz Lohrke, entrepreneurship professor at Samford University's Brock School of Business.

"It seems like there are some disincentives to growth," he said. "A lot of the new laws kick in once you go above 50 employees. Those penalties can be rather severe."

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