IBD: 258 Employers Cutting Hours, Workers Because of Obamacare

Monday, 09 Sep 2013 08:14 AM

By John Morgan

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Investor's Business Daily (IBD), a staunch opponent of Obamacare, said it has begun compiling a list of companies that have shed work hours, jobs or taken other steps to avoid costs of the government program, and came up with 258 companies so far.

Almost all of the employers have cut the hours of part-time staff to below 30 hours per week, IBD said, which is a threshold at which Obamacare's insurance mandate kicks in.

Other companies on the list have trimmed full-time head count below 50 workers to avoid Obamacare's full-time-equivalent worker definition that would require them to offer health insurance, or have added more temporary workers in lieu of full-time staff.

Editor’s Note:
Retired Americans Slammed by Obama’s Redistribution Plans

However, IBD said it came up with only 19,300 workers so far that are definitively facing reduced hours on account of the pending implementation of Obamacare, more formally the Affordable Care Act (ACA).

Why so few? "Because private firms may fear bad publicity or litigation if they admit to cutting hours to avoid Obamacare's coverage mandate, it's not surprising that few would be willing to come right out and say it," IBD said. "It's only logical to take their denials with a grain of salt."

For instance, the newspaper said it was not counting an announcement by clothing retailer Forever 21 that it was cutting hours for 192 workers to 29.5 per week in its tally.

Over 100 reports of reduced hours came in May and June, but the numbers subsided after the White House announced July 2 a one-year delay on ACA-related employer penalties.

The IBD list includes both private and public sector employers. The public sector count includes 34 universities and colleges that have cut the hours of part-time and adjunct faculty, and 67 local school boards that have cut the hours of part-time instructional aides, cafeteria workers, bus drivers and coaches.

Many of the private sector hour cuts have come in low-wage industries, and the average low-wage workweek has fallen back toward recessionary levels, according to the newspaper.

The Congressional Budget Office estimates about 25 million Americans are expected to enroll in Obamacare exchange plans by 2018, Bloomberg reported.

Under the regulations, insurers may not deny coverage or raise premiums for people in poor health, or charge women more than men, common practices now, according to Bloomberg. The ACA also stipulates that insurers may charge their oldest customers a maximum of three times the price for their youngest ones.

Fox News reported the early beneficiaries of the ACA include investors in healthcare stocks, lawyers, consultants and lobbyists with ties to Obamacare.

Editor’s Note: Retired Americans Slammed by Obama’s Redistribution Plans

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