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RVC forced to reduce part-time hours due to Obamacare

Mandates for the Patient Protection and Afforability Care Act (Obamacare), will affect most businesses, public and private. The health care reform forces employers to make business decisions that will affect the lives of their employees in order to comply with the over 2000 pages of regulations in the Act.

Make no mistake; PPACA will affect the life of each and every American. With 30 million new people added to the health rolls, expect doctor shortages and big cuts in basic care.

Medicare will be placed on parity with Medicaid with increasing healthcare costs, with those costs passed on to the patients through rising insurance costs.

Excerpt:

Some business leaders answered honestly that they’re considering cutting employees’ hours (19 of 53 said they would or weren’t sure). Many others plan to increase prices (18 of 51 said they would) to deal with cost increases on their end.

Under the new law, employers with 50 or more people on the payroll would have to offer health care benefits to those who work more than 30 hours a week or pay a per-employee penalty if they don’t. Penalties start accruing at $2,000 annually for each full-time employee…

and finally,

Federal officials will use 2013 to measure what businesses will need to do about benefits in 2014, so many companies could start reducing employees’ hours or increasing prices next year.

Rock Valley College took action last week to pare down the hours of their Continuous Part Time employees to 25 hours. Beginning in 2014, public and private employers, who have part-time employees, will be required to offer insurance benefits to those employees who work an average of 30 hours per week or face a financial penalty.

New part-time employees at RVC are being hired with a 25 hour maximum. At this time the college cannot afford the insurance expense or the penalty for not providing the health insurance.

The action will become effective July 1, 2013 for all affected employees. Other businesses are either lowering their staff below 50 employees, if they are near that number of employees or will not hire additional employees if they would exceed 50 employees.

PPACA has only been partially implemented and it is already affecting jobs and hours worked by certain individuals, despite promises by proponents of the Act that people’s current insurance coverage would not be affected.

 

 

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33 Comments

  1. shawnnews

    Too bad conservatives failed to lead with facts — shortened hours to reduce costs — and chose hyperbole — rationing! Death panels! Stalin! Kenyan! — to make their point. Something for the Tea Party, Oath Keeper crowd to think about.
    80s conservatives could allude to and reference Milton Friedman or Friedrich vom Hayek as academic sources who could explain the a plausible scenario about the health care bill being the an additional financial hurdle for a business to meet. Instead, 21st century consevatives chose the shrill voice of alarm over the subtle voice of reason.

  2. 1) RVC will still have more than 50 employees, with or without part-time instructors.
    2) The ACA does not go into effect until Jan 1, 2014.

    Nice try, Ted.

    • Ted Biondo

      RVC is reducing the hours of the part-time employees effective at the start of the fiscal year July 1, 2013, bejer50, so RVC don’t have to pay for insurance or pay fines – what don’t you get about that? Many of the part time people work more than 30 hours at times. Read the law or would you be able to, since most of the Democrats that voted for it didn’t read the over 2000 pages either.

  3. Yep,

    Yes RVC has more than 50 employees, but part timers if they work 32 hours a week then RVC has to pay for healthcare but part timers who only work 25 hours a week, do not get health care.

    I agree shawnnews, but I am worried the public today can’t understand those details. Just like the fiscal cliff, being only about taxing the rich, while it really is much deeper and far reaching.

  4. People are better off just not working vs. working 25 hours per week. It’s a proven system practiced by tens of millions of people. Heck, you get unlimited unemployment extensions, you will receive food stamps and the best part, free Obamacare (since you make nothing, you are exempt from having to buy coverage.) A 25 hour job can’t come close to that so why burden yourself!

    • Ted Biondo

      Right, Juice and Obama, while we are trying to keep from being pushed off the fiscal cliff, is looking to increase stimulus spending and keep unemployment in force for two more years. This dumb B#$%& don’t even understand that spending more than you have in revenue is where the debt comes from – he continues to think that the rich will solve his problem – he’s stupid or a Socialist, take your pick!

  5. JRM_CommonSense

    Well Ted, as usual, you have chosen to highlight the boogiemen rather than the truth.

    First, the PPACA is only 906 pages long, not the 2000 pages you now claim compared to the 2500 pages you complained about several months ago.

    Second, you again chose to rag about the doctor shortage that will happen because of 30 million more patients on the insurance roles. It seems you have again failed to learn about supply and demand. I guess you have failed to read the announcements from OSF about their plans to open 2 additional clinics in the Rockford area (Roscoe and Rockton). It seems like they want to make sure they get their share or the new consumers. And I am sure they will not have to hire doctors and nurses to staff those clinics. Supply and Demand, Ted, it is time you learned about it.

    I am surprised that you didn’t throw out the old “death panels”. That’s always a good boogieman to use to scare people, expecially the older ones.

    And I also see that you didn’t mention that some of the reasons for part time employees is also that the employer does not have to pay for a retirement package for them either. Healthcare costs have always been a reason for part time employees. This is nothing new! But I find it interesting that RVC reduced the hours to 25, when the healthcare level will only be 30 hours. Kind of makes you go “Hmmmm”. Confirms that you are just looking for another boogieman and not truth. Or maybe the RVC board is listening to a member that blurs the facts. But then again, you can dismiss that because I am a nitpicker………….

  6. It is what it is Ted because the Republibaggers refused to participate on a national health bill for all Americans. Now because of your party’s obstinance you can enjoy the thrill of jumping over the cliff.

    • Ted Biondo

      As long as those of us who work get to choose our own charities, Steverino, instead of being forced by Democratbaggers to pay for others who will not take care of themselves, or choose not to buy insurance because they would rather spend their money on booze and drugs and after having dropped out of school – all their choices.

      The National healthcare bill you want us to participate in is simply another way to take more money from taxpayers who earn it, and redistribute it to those who don’t or those who choose not to buy insurance like they do in Europe. Their health systems great – read about it online.

      Where is the freedom in a country that tells us how to spend almost every dollar we earn?

      If YOU wnat to contribute more to this great government, go get a second job and have at it. Me, I’ll continue to give to charities who actually help people get back on their feet, instead of living off the rest of us!

  7. Republicans refused to participate? The Obama Regime wouldn’t let them participate. ObamaCare was written mainly by Leftist political hacks and lobbyists, with no one else allowed in, and then rammed down the throats of the American people, with no debate of discussion of the issues.

  8. BTW, remember when B. Hussein Obama said: “no matter how we reform health care, we will keep this promise: If you like your doctor, you will be able to keep your doctor. Period. If you like your health care plan, you will be able to keep your health care plan. Period. No one will take it away. “?

    He lied (again).

    As President Obama’s health-care overhaul takes effect in the next few years, close to one-in-ten employers will stop offering health-care coverage for their workers, according to a new study. Companies with between 50 and 100 workers will be most likely to drop coverage for employees, according to the findings.

    Deloitte, a consulting company, found that once changes are enforced in the health-care system via the Affordable Care Act, 9% of employers will drop offerings in the following one-to-three years. Deloitte found 81% were planning to continue offering coverage and 10% were unsure of how they would proceed.

    Read more: http://smallbusiness.foxbusiness.com/legal-hr/2012/07/24/survey-finds-obamacare-means-nearly-10-businesses-to-drop-coverage/#ixzz2GSSGRUzV

  9. And…

    How’s That Obamacare Waiver Workin’ Out for Ya?

    Exactly two years ago this week, the Obama administration announced it had issued more than 100 waivers en masse to a select group of companies, unions, and other health-insurance providers seeking relief from the onerous federal health-care law. The Obamacare-waiver winners’ club now totals 2,000. Where are they now?

    Answer: In the same miserable boat as every other unlucky business struggling with the crushing costs and burdens of the mandate.

    Among the first and most prominent recipients of the Obamacare waivers for favors were large restaurant chains that provide low-wage, seasonal, and part-time workers with low-cost health-insurance plans called “mini-med” plans. An estimated 1.7 million workers benefit from such plans. Obamacare forced companies carrying such coverage to raise their coverage limits to no less than $750,000 annually. Another Obamacare provision forces all insurers to spend at least 80 to 85 percent of their premium revenue on medical care.
    ==================================================================

    In fact, a survey of members of the Chain Restaurant Compensation Association (CRCA) conducted last year by Hay Group reported that a whopping 77 percent of “quick serve” restaurant operators said they were considering reducing employee hours to change the employees’ status from full-time to part-time. At least one Denny’s restaurant franchise owner in Florida is cutting hours and has openly contemplated an Obamacare surcharge on meal prices. Jimmy John’s and Papa John’s are also slashing work hours. Applebee’s is mulling a freeze on both hiring and expansion.

    Read more at: http://www.nationalreview.com/articles/333535/how-s-obamacare-waiver-workin-out-ya-michelle-malkin#

  10. JRM_CommonSense

    You see, here is another boogieman exaggeration that happens when you are trying to prove a point that is not provable: “Where is the freedom in a country that tells us how to spend almost every dollar we earn?” It now ranks up there with the one about the “war on religion” taking away everyone freedom of religion in this country. It is amazing that this type of stuff comes out of the mouth of a supposedly well educated man who claims he is capable of logical thought.

  11. healthcare_advocate

    JRM_CommonSense, you are right that normally when demand for a product or service increases, supply will follow. However, in the case of our current and future shortage of 60-100,000 primary care physicians, there might be an eventual supply increase to match demand. But, it takes 10 years to make a doctor. We don’t have enough people in the pipeline to make a dent in the demand shortage. So, we’ve got a doc drought for the next 10 years at a minimum.
    Moreover, fewer and fewer docs want to do primary care because it pays so much more to be a specialist.
    Making things even worse is the move toward concierge medicine for the affluent. A primary care doc can go from a practice with 2500 patients to a concierge practice with 250 patients each of whom pays thousands of dollars per month to guarantee access. But, that leaves 2250 patients out in the cold.

    • Ted Biondo

      Great points, healthcare_advocate, great points, especially about the dual healthcare, which will springup from Obamacare. Canada doctors are already doing it through medical clubs, (see attached link I posted over 2 1/2 years ago) where the affluent pay a fee of “X” thousand a year and receive private care. That will, as you wrote sir, decrease the qualified physicians even more from the government run healthcare program!

      Doctors are already refusing to take new Medicare patients, and until this country goes entirely European Democratic Socialist, the government can not compel doctors to stay in the program. All the government has been able to do thus far is not to allow doctors into the government’s “great” Medicare program, where doctors lose mucho bucks.

      http://blogs.e-rockford.com/tedbiondo/2010/06/10/canadian-doctors-set-up-private-clinics-to-adequately-treat-their-patients/

  12. healthcare_advocate

    JRM_CommonSense, as to your point about employers not needing to provide retirement coverage to part-timers., there is no legal requirement for any employer to provide retirement coverage. Moreover, the vast majority of today’s retirement plans are 401Ks/IRAs which may or may not have an employer contribution. Thus, a small company can make a 401K/IRA available to employees for a very modest administrative cost.
    Obamacare is legally required for millions of small businesses with a significant employer contribution also required.

  13. Boehner and Cantor refused to participate in the health care summit because they didn’t want the President (of all people) to have a leadership position when discussing all health care options since publically it might make him look good. He was more than willing to listen to proposals from the GOP but they declined presumably because they had nothing to offer except huddling before the press and whining.

  14. JRM_CommonSense

    As far as I can see today, the majority of the primary care work in healthcafre is being done by Nurse Practitioners and Physicians Assistants under the direction of Doctors. The PPACA includes provisions that provide for education assistance and payoff structuring that encourages more people to complete nursing, physician assistant, and nurse practitioner courses of study as well as midwife career paths. How do I know this, well, my two daughters are well along that path and keep me informed as to what is happening in their industry and fields. The youngest is a RN working towards Nurse Practitioner, and the oldest has been a Nurse Practitioner for several years and has completed her clinical and delivery requirements for midwife. Yesterday she passed her 50th delivery milestone. This is heatlhcare of the future whether you chose to believe it or not.

    If employers chose not to provide healthcare, they are opting out and paying the much cheaper penalty. However, they are also opting out of a much larger, more reliable employee pool by choosing to be penny wise and dollar foolish.

    And, by the way, one of the most famous cases of concierge medicine and those private care physicians is a guy named Conrad Murray who took great care of Michael Jackson.

  15. healthcare_advocate

    JRM_CommonSense, your reply doesn’t deal directly with the doc shortage. In fact, you never mentioned Nurse Practitioners and Physicians Assistants in your original comments. You suggested that demand would create the needed docs. The question is: will NP’s and PA’s make up for the doc shortage. I certainly don’t have the answer to that, but we also have a looming shortage of nurses, too. Here’s some info on that problem:
    A recent editorial by the AAFP, titled “Nurse Practitioners Are Team Members, Not Leaders, in the PCMH” points out some very disturbing numbers and trends. It begins by pointing out that the IOM and nursing organizations are correct in their analysis that there is a primary care physician shortage and that the role of CRNPs and the medical team could be increased to help with this shortage. However, it provides numbers produced by the American Association of Colleges of Nursing (AACN) that the IOM, CRNP advocates, and the media fail to mention when talking about the expansion of the current scope of practice and independent practice: “the U.S. nursing shortage is projected to grow to 260,000 registered nurses by 2025 … U.S. nursing schools turned away 54,991 qualified applicants from baccalaureate and graduate nursing programs in 2009 due to insufficient number of faculty, clinical sites, classroom space, clinical preceptors, and budget constraints. In addition, almost two-thirds of nursing schools say faculty shortages are the reason they cannot accept more entrants into their programs.” That’s from an editoria at the AAFP: http://www.aafp.org/online/en/home/publications/news/news-now/opinion/20101112editorial-nps.html
    It sounds like we have both a doc and an nurse problem. But, the good news is that your daughters are set for life as PA’s or NP’s.
    As to concierge medicine: Are you suggesting that the typical concierge practice doc would be just like Conrad Murray? That’s quite a broad smear for primary care docs who take that route. In fact, concierge medicine represents an critical trend–and there are now affordable options so that even middle-class folks could have a concierge choice.

  16. 1) RVC will still have more than 50 employees, with or without part-time instructors.
    2) The ACA does not go into effect until Jan 1, 2014.
    3) “Death Panels”

    RVC will have more than 50 employees, but Obamacare only kicks in for 50 or more “full time” employees. Hense, shifting to part-time employees gets around the law.

    The ACA does into effect immediately. Pre-conditions, preventive care are already in my healthcare plan. Also healthcare is more expensive if you smoke, which now you have to sign a legal statement & pay 30/month if you do. The taxes on Obamacare start Jan 1, 2013, on investment income, medical devices & so forth. Obama taxes your replacement hips, legs, basically everything in medicine is a medical device-and these companies announced they are moving jobs to Mexico. The penalties & exchanges are expected by 2014.

    Death Panels-It amazes me liberals still deny there is an IPAB-Independent Payment Advisory Board in the bill, which will have wide ranging decisions, and it can make end of life decisions, any decision it wants, only overturnable by a 2/3 majority in the congress. This board is tyranny.

    Finally, the CBO says the bill explodes the deficit if the revenue realized by the 40% surcharge on high end plan is not realized. Will people buy high end plans at 40% more next year or buy another plan altogether?

    Obamacare is a travesty.

  17. JRM_CommonSense

    Dan, in spite of Ted’s resounding pat on the back, you have misrepresented what the purpose and effect of the IPAB-Independent Payment Advisory Board. You need to read the bill before you repeat inaccurate assessments.

    The PPACA defines that the purpose of the IPAB is to “develop specific proposals to bring the net growth in Medicare spending back to target levels if the Medicare Actuary determines that net spending is forecast to exceed target levels, beginning in 2015.”

    AND it also clearly states that the IPAB recommendations “shall not include any recommendation to ration health care, raise revenues or Medicare beneficiary premiums , increase Medicare beneficiary cost sharing (including deductibles, coinsurance, and co-payments), or otherwise restrict benefits or modify eligibility criteria.”

    • Ted Biondo

      The IPAB will not call it rationing, but priorities will be set in their decisions, JRM. It has to occur since there are not enough doctors to go around with 30 million or more new patients w/o health insurance and many doctors will not participate in the PPACA because it will not pay enoigh to compensate for their operating costs, pardon the pun.

      As a matter of fact, cuts for medical compensation greater than 20% is already being voted on by Congress annually and under Obamacare is one of the ways Obama intends to reduce costs in Medicare by about $500B.

  18. JRM_CommonSense

    @healthcare_advocate:

    I think you should go back and refresh yourself on Title V of the PPACA, Subtitles A through H.

  19. Yeah, and it also says nothing about invoking single-payer (government) health insurance.

    However, its onerous rules and restrictions will increase health care policy prices, which will make it cheaper for employers to pay the ObamaCare penalty, and stop providing health insurance to its employees.

    Then, government will be “forced” to offer single-payer coverage, just as the Obama Regime planned.

    As P.J. O’Rourke stated: “If you think healthcare is expensive now, wait until it is free”.

    • Ted Biondo

      Bravo snuss, concerning your P. J. O’Rourke quote. Absolutely true. I don’t care what the PPACA law states, JRM. The costs of any government program increases over what was intended in almost all cases. All the American people can hope for is that the medical care cost increase is arithmetic and not geometric under our most inefficient government control or lack thereof!

  20. JRM_CommonSense

    May not even be worth replies any more! People believe what they want to believe no matter what the law says. People have no problem accusing people of saying things they did not say, and then run and hide when they are proven wrong -couldn’t apologize or admit they were wrong if you paid them. AND can’t find God in their lives anymore because they don’t see a manger scene in the town square. Why should anyone expect them to have a reasonable view of anything.

  21. JRM fails to understand that laws can be written to prohibit things that are not mentioned in the law, or perhaps he is just intellectually constipated (doesn’t give a —-).

    For example, the law that was to eliminate the sale of 100w light-bulbs didn’t BAN them, it just stated that only light-bulbs that met certain energy standards were legal to sell. The same with 1.6 gallon flush toilets, only those toilets that met these arbitrary environmental standards could be sold.
    Legal “weasel-words” can twist meanings beyond the comprehension of the average person. That is why I feel that lawyers should be banned from holding public office. All they do is perpetuate the need for their profession.

  22. healthcare_advocate

    JRM_CommonSense, to your suggestion that I “go back and refresh yourself on Title V of the PPACA, Subtitles A through H,” the efforts to increase supply are a well-meaning but doomed attempt. If we are short 50,000 docs @ $200,000/doc, the cost to fund that(never mind the lack of qualified candidates, of available professors, of seats in medical schools, of residency programs) would be $10,000,000,000. Even if we found the $$, how do we create the infrastructure and get the candidates in place today so that we have docs in 10 years?
    I look forward to revisiting this issue with you in the years to come. I’m willing to bet $1 that I’m right.
    Happy New Year!

  23. Don’t worry, we can import doctors from Cuba. They work really cheap, and with limited resources. Castro loves to rent them out.

  24. JRM_CommonSense

    Are these the same “predictors” of a sweeping Republican victory in the last Presidential election which would put the Replubicans in complete control of the government (White House, Senate, and House) and drive the repeal of the PPACA (with no planned changes or inprovements to health care)?

    Are these the same “predictors” of doom and gloom who rant about being subject to a “war on religion” when they still have the rights to practise their religion everywhere in this country?

    Are these the “predictors” who supported an unsuccessful campaign against all tax increases and massive spending cuts by the same Congress that twice failed to do that very thing and then drove us to the edge of the “fiscal cliff” by blackmailing themselves with sequestration and failed to get it done.

    That’s an 0-3 record! And now they are predicting their doom and gloom of the PPACA with chants of rationing, “death panels”, lack of health care workers, doctors quiting because they can’t get paid enough, and a host of other boogieman/chickenlittle pronouncements.

    Heading down the road of being 0-4. I am willing to take the $1 from the bettors when they quietly slink away or move on to their next “predictions” because their old ones didn’t come true. Let’s see what they attack next without doing their reading or research and prepare to watch them dash for 0-5. The Lovie Smiths of the political world.

    Happy New Year, y’all!

  25. I am willing to predict that Obama’s policies, if allowed to continue unimpeded, will turn this Country from a representative republic into a bankrupt socialist hellhole, like Greece. The only difference is, there will be no one to bail US out.

    As de Tocqueville opined so correctly:

    “Democracy extends the sphere of individual freedom, socialism restricts it. Democracy attaches all possible value to each man; socialism makes each man a mere agent, a mere number. Democracy and socialism have nothing in common but one word: equality. But notice the difference: while democracy seeks equality in liberty, socialism seeks equality in restraint and servitude.

    And:

    The foremost, or indeed the sole condition which is required in order to succeed in centralizing the supreme power in a democratic community, is to love equality, or to get men to believe you love it. Thus the science of despotism, which was once so complex, is simplified, and reduced as it were to a single principle.

    After having thus successively taken each member of the community in its powerful grasp and fashioned him at will, the government then extends its arm over the whole community. It covers the surface of society with a network of small, complicated rules, minute and uniform, through which the most original minds and the most energetic characters cannot penetrate, to rise above the crowd. The will of man is not shattered, but softened, bent, and guided; men are seldom forced by it to act, but they are constantly restrained from acting. Such a power does not destroy, but it prevents existence: it does not tyrannize, but it compresses, enervates, extinguishes, and stupefies a people, till each nation is reduced to nothing better than a flock of timid and industrious animals, of which the government is the shepherd.

    Translation: The elitist government sees the citizenry as no more than sheep, to be herded, sheared, and/or slaughtered, at will.

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