Friday, July 5, 2013

The Real Reason PPACA's Employer Mandate Was Delayed

The more I read on the subject the clearer the logic becomes. At this point I would not be shocked if the Obama Administration permanently delayed the employer mandate and we also now need to watch for a suspension of the individual mandate and the exchanges.  

The individual mandate is in real trouble because the optics of electing to punish individuals while granting a free pass for businesses will be heavily damaging heading into an election year. And the exchanges are in peril because now that employers will not be obligated to report on affordable coverage in 2014, there is no practical way to verify whether an employee (individual exchange applicant) qualifies for subsidies.  (See this article from Forbes on this topic: Not Qualified For Obamacare's Subsidies? Just Lie -- Govt. To Use 'Honor System' Without Verifying Your Eligibility.)

Below is a list published by Investors Business Daily detailing 42 businesses and organizations that have cut employee hours to under 30 per week due to Obamacare.  No ACA supporter wanted to have to run for office with this problem growing exponentially as 2014 approaches and unfolds. 

President Obama delivers remarks on the Affordable Care Act in San Jose, Calif., on June 7, 2013. AP
President Obama delivers remarks on the Affordable Care Act in San Jose, Calif., on June 7, 2013. AP. 
The official reason for the one-year delay in ObamaCare's employer penalties is to smooth the transition for companies struggling with the law's complexity and reporting requirements.
But other problems likely moved the administration to act: The cost to modest-wage workers in lost hours has grown each week as employers, especially local governments, have cut part-time schedules. And the job cuts spelled political trouble for Democrats in midterm elections....
Listed below are 42 announcements of cuts to worker hours in which employers highlighted the number of employees taking a hit. This represents about one-third of more than 120 employers that IBD's cursory search found had publicly acknowledged reducing workers' hours....
Here are the 42 announcements:
1. Virginia capped hours for part-time workers at 29 a week, shortening the workweek for an estimated 7,300. Of those, 1,480 work at the Virginia Community College System, 880 work at Virginia Commonwealth University, 600 work at the Virginia Department of Alcoholic Beverage Control and 500 work at Norfolk State University.
2. Chesterfield Public Schools in Virginia capped hours for part-time workers at 28 per week, reducing hours for 2,000 people.
3. Maricopa Community Colleges in Arizona reduced hours for 700 adjunct faculty and another 600 part-time workers.
4. Granite School District in Utah cut hours for 1,000 part-timers to 29 per week.
5. Alpine School District in Utah cut hours of 800 part-timers to below 30 per week.
6. Fort Wayne Community Schools in Indiana cut the hours of 610 part-time teaching aides and cafeteria workers.
7. University of Arizona in Tucson cut hours for 500 temporary and part-time workers.
8. The Community College of Allegheny County in Pennsylvania cut the hours of 400 adjunct faculty and other part-time support.
9. Papillion-La Vista School District in Nebraska cut hours for 281 part-time employees .
10. AAA Parking in Georgia cut 250 full-timestaff to part-time.
11. University of Akron in Ohio cut hours for 230 part-time faculty.
12. Kean University in New Jersey cut course loads for 210 adjunct faculty.
13. Mason, Ohio, cut part-time hours for 200 people to 20 a week.
14. Florida's Palm Beach State College cut hours for 200 adjunct faculty to 27.5 a week.
16. Chesterfield County in Virginia cut hours for 115 part-time workers to 28 per week.
17. Shelbyville Central School System in Indiana reduced hours for 100 part-time workers.
18. A Wendy's (WEN) franchisee in Nebraska cut hours for 100 nonmanagement workers to 28 a week.
19. Zionsville Community Schools in Indiana cut hours for 100 instructional aides, coaches and substitutes to 29 per week.
20.  Fayette County School Corp. in Indiana reduced hours for 90 part-time workers to 27.5 per week.
21. Spartanburg Community College in South Carolina cut hours for 90 adjunct faculty.
22. Medina, Ohio, cut weekly hours for 65 part-timers from 35 to 29.
23. Spencer Community School District in Iowa reduced the hours of 65 part-time employees.
24. Kga Group, a Subway franchisee in Michigan, cut hours for 60 part-time workers.
25. Southern Lehigh School District reduced hours for 51 part-time employees.
26. Plano, Texas, cut hours for 45 part-time workers .
27. Springfield Platteview Community Schools in Nebraska cut 7.5-hour days to less than six hours for 43 paraprofessionals.
28. Nebo School District in Utah cut hours for 40 part-time workers to 28.75 a week.
29. Mount Horeb Area School District in Wisconsin cut hours for 36 paraprofessionals.
30. Lynchburg, Va., cut hours for 35 part-time employees.
31. Boone Community School District in Illinois cut hours for 30 part-time workers.
32. Rancho Cucamonga, Calif., cut hours for30 part-time workers.
33. Speedway Schools in Indiana cut hours for 30 teaching aides to avoid the mandate (but with an offsetting pay hike).
34. CY Farms in New York eliminated 20 jobs to stay below the 50 full-time-equivalent threshold.
35. Lexington Board of Education in Kentucky reduced the hours of 20 part-time workers and provided an offsetting pay hike.
36. Lebanon City in Ohio cut hours for 18 part-time firefighters and paramedics.
37. Chippewa County in Wisconsin cut hours for 15 part-timers.
38. Douglas County West School District in Nebraska cut part-time shifts for 12 workers by 45 minutes a day.
39. East Penn School District in Pennsylvania cut hours for 11 food-service workers.
40. White River Valley School District in Indiana reduced hours for 11 noncertified employees.
41. Wolfe's Auto Auction in Indiana cut 10 full-time employees to part time.
42. Charco Broiler in Colorado trimmed hours for three workers to stay below ObamaCare's 50 full-time-equivalent threshold.