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.
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…
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.