Does the Affordable Care Act Reduce Job Opportunity?
Posted in the Medicare Forum
Since: May 13
#1 May 4, 2013
Recently trends in the job market suggest that employers are less likely to hire full time staff. When HR managers are asked about this trend, we are frequently told that uncertainty in with the impact of the Affordable Care Act will prevent them from hiring a 40 hour employee. Employers site, that the trend to reduce hours is directly linked to the mandate for healthcare coverage. So if you reduce the number of working hours that employees hold, then the employer in return will reduce his expense in healthcare coverage expense. This forces the general public to work two part time jobs, usually without benefits, rather then one full time job. The other issue that potential employees should be aware of, is the trend or employers to take the 'opt out' provision for healthcare benefits and pay the penalty. Currently the penalty is $2000.00 per employee. For most small businesses, the is the only option because the premium payment for healthcare benefits will be far greater. For other companies the penalty will be a much smaller price to pay, then provide all employees healthcare benefits. But employers should be aware that this penalty is not set in stone. Most likely, at some point during the second and third year, the $2000.00 penalty will increase on a consistent bases. So in the long run, it may in fact be cheaper for companies to continue to cover employee health benefits.
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