Will your employer cut your hours because of Obamacare?
The law requires employers to offer health coverage to all full-time workers. They can avoid the rule by reducing an employee's hours to fewer than 30 a week, which is the cut-off for part-time status. Some companies have already said they plan to do so for some workers.
Will your employer cut your hours because of Obamacare?
Robert I. Field, Ph.D., J.D., M.P.H.
Could Obamacare cause you to lose paid work time?
The law requires employers to offer health coverage to all full-time workers. They can avoid the rule by reducing an employee’s hours to fewer than 30 a week, which is the cut-off for part-time status. Some companies have already said they plan to do so for some workers.
If you are cut back to part-time status, you could find yourself in a bind. Your employer doesn’t have to offer coverage, but the law’s mandate still requires you to have it. Fewer hours could also mean less money with which to buy a policy on your own.
But don’t worry too much. If recent trends are any guide, it is not likely to happen. A study by human resources consulting firm Mercer found that fewer than 12% of companies plan to reduce workers’ hours because of Obamacare. And a survey of employers by a second firm, Aon Hewitt, found that 94% are committed to offering and financially supporting worker coverage under the law.
These findings are supported by a recent review of Minnesota state data on job openings by the Minneapolis Star Tribune. It found no difference in the percentage of jobs labeled part-time or seasonal between 2008 before the law was enacted and 2012 when implementation was approaching.
And those studies don’t take account of predicted economic expansion over the next few years. As the economy grows, companies will face fiercer competition for workers, and offering health benefits can make a huge difference in attracting applicants.
What’s more, many of the employers who say they will cut worker hours may end up not doing it. The disruption to their workforces from reducing hours could be more costly than the addition of health insurance.
One exception may be companies with slightly more than 50 full-time workers. If they cut back to fewer than 50, they can avoid the law’s mandate to provide coverage completely. But for larger firms, the cost of implementing workplace changes is much less likely to be worth it.
Of course, many companies already keep workers on part-time status to avoid having to provide them with health coverage. There’s been a trend in that direction for several years, starting before Obamacare was passed. Those companies would keep doing it regardless of the law.
If you already work part-time, Obamacare could be a huge boon. A recent study by ADP Research Institute found that only 8% of part-timers are presently enrolled in their employers’ health plans. Most are not eligible for benefits, and many of those who are can’t afford the premiums.
Under Obamacare, part-time workers are guaranteed the ability to buy a policy on their own on an exchange regardless of their health status. And those with low incomes can get subsidies to help with the cost.
So, indications are that the dire predictions of job losses due to Obamacare have not come to pass. Whether employers will change their behavior after the law fully takes effect in 2014 remains to be seen. What is certain is that millions of workers who presently don’t have health coverage will be able to get it.
Big companies won't do it blindly because they can't survive. But they'll have to come up with other ways to save money so whatever they do will hurt the economy. Small companies probably will if they can and of course we know small companies really drive the economy. Just like with individuals, there's a layer of "middle class" companies and now the government is squeezing them out of existence like they're doing with individuals.— Phillies2008WSChamps- You can plan on having your hours cut and anything else an employer can do to try to stay afloat financially in light of the Obama economy. Obama also said "you can keep your doctor if you want under my plan" but a new Congressional Budget Office study shows that 7 million people (TWICE the original estimate) WILL have their employer drop health insurance all together as it will be cheaper to pay the fine/tax than pay for the Obamacare-triggered skyrocketing cost of it.— Strongbow
- "What is certain is that millions of workers who presently don’t have health coverage will be able to get it."
I always thought coverage was already universally available to those willing and able to pay for it.
— ekw555 - Of course they will, they cannot afford not too. A lot of people wanted this "awesome" healthcare, but no one really thought about the actual cost and who would pay it. Well here it is and it costs everyone that works and already had insurance a lot more money, so we can provide care to lazy/worthless freeloaders. Oh yeah, anyone else notice that Obama's pledge to not raise taxes on us middle class was a blatant lie, my taxes went up at the start of the year and I am no where close to the $250k Obama said was rich.— dcn
- let me take this moment to point out that corporate profits are at all time historic highs. and that the salaries and wealth of the top 10% of Americans has gone through the roof, increasing over ten times faster than the bottom 90%, even during the height of the recession. It is time for some wealth redistribution back down to the working folks.— Ryan
- Ever wonder if this plan is so good, why did all the politicians, including Obama, make sure they were exempt from this awesome health coverage.— dcn
- @Ryan = Socialist.— dcn
- Ryan = clueless. Yeah let's make policies based on the 9,000 publicly traded companies and ignore the millions of small companies who are struggling and don't have record profits.— Phillies2008WSChamps
- I'm self employed. My health care policy has risen from $8000.to $12500 in the two years Obamacare has become law. In addition we now have a 20% copay and a $2500 deductible. My agent has said to brace for further increases through the next 2 years. Obama is purposely acting to destroy this country. His mother hated America and passed that hate onto him. We as a free people are finished. The Democrat/Communist party will kill us all— hawk
- "And those studies don’t take account of predicted economic expansion over the next few years. As the economy grows, companies will face fiercer competition for workers, and offering health benefits can make a huge difference in attracting applicants." This paragraph alone renders this entire article completely laughable.
— SammyMaudlin - Obamacare is an expense. As such, companies will reduce another expense within that side of the sheet....usually human resources or investment in growth. Obamacare costs will NOT come from the profit line. That is basic business 101. So yes, Obamacare (and all other Obama related expenses) will come from the expense side of the sheet...including a reduction in human resources.— kelprod2-freemarket
- The fact that the Inquirer has to send these two Obamacare-cheerleaders Filed and Cohen out there to reassure the sheep is very telling.— Strongbow
The economy is tanking already due to the massive tax increase on low and middle incomes families that occurred on 1/1/13 that the main stream media refused to cover. Once the Obamacare Tax kicks in, look for unemployment to swell again, while gas goes to $5 a gallon, and inflation jumps up to 4%.— The Monk
Comment removed.- Sitting at an outside table and a hungry man walked up to me, I showed him my plate, it was as empty as his. — agreed
