One element of Obamacare is the requirement that companies--that's most companies in the United States, defined as "having less than 50 employees who work 30 or more hours weekly"--aren't required to cover part-time workers. Beginning in 2015, if those companies offer healthcare plans, their employees may be disqualified from receiving subsidies from the government-run insurance exchanges that opened last October.
According to Bloomberg news, now that the bill has been passed, signed, and is rolling out, serious business people have learned of its actual contents and have responded appropriately (defined as "doing what is in the best interest of the firm and its shareholders"). Trader Joe's, Home Depot, and other retailers have responded by scaling back benefits.
Just the other day Target announced that it will be joining the crowd, terminating healthcare insurance for part-time employees beginning April 1, 2014. This decision will impact ~10% of Target's part-time employees (defined as "working less than 30 hours/week"). Employees who will be losing coverage will receive $500. In addition, a consulting firm will assist them in signing up for new a Obamacare plan. On its website, Target stated that by offering those employees insurance "we could actually disqualify many of them from being eligible [for subsidies]."
What an April Fool's Day joke! No, not the loss of being able to participate in Target's healthcare plan. That's a rational decision on the part of Target's management. What's not stated on the company's website is that the $500 those employees will be receiving is taxable income.
Then-Speaker of the House, Nancy Pelosi (D-CA), observed that "The more people see what's in it, the more they'll like it"?
How that Obamacare looking to you today?
Let the discussion begin...
To access the Bloomberg news article, click on the following link:
"Target to Drop Health Insurance for Part-Time Workers."