Some NC employers cut worker hours to avoid cost of health care reform

[WorseBeforeBetter]

....

While many businesses are scaling back work hours to keep part-timers out of the company insurance plan, others are not hiring so as not to cross the 50-employee definition for large employers – the federal threshold for having to insure full-time employees. Still other businesses are mulling the option of scotching company health coverage altogether and paying a federal fine instead

....

It’s expected that some will opt for the fines. Nancy Adams, owner of Piggly Wiggly grocery stores in Sanford and in Broadway, said that’s one option under consideration for her business. The $2,000-per-worker fine would apply to just five full-time employees at the two Piggly Wiggly stores, amounting to $10,000 a year, she said, because the law exempts the first 30 workers from the fine.

Adams said the company would save considerably and likely give workers a $2-an-hour pay raise to help them buy individual policies on a health care exchange. Such exchanges, created by the Affordable Care Act, are designed for those who buy coverage on their own.

Adams’ grocery business has 86 employees and currently provides insurance to 31 of them at a cost of about $120,000 a year. Insuring all those who work at least 30 hours would raise the cost to about $165,000, she said.

“We don’t have the pockets to pay an extra $45,000 for health insurance,” Adams said. “It’s huge.”

http://www.newsobserver.com/2013/06/01/2932880/some-nc-employers-cut-worker-hours.html#storylink=cpy

Can't wait to see what it costs to buy insurance through the federal exchange...

[Sherman A1]

1. This will be interesting

as we see what paths various businesses take as the law comes into effect.

[WorseBeforeBetter]

2. Yep.

My gut is telling me many will just go with cutting hours so there will be more PT workers, and paying the fine for FTers -- much less complicated. But we'll see.