The New “Full” Time in 2014


In the face of expected major changes (namely mandates for offering coverage or penalties/fines) coming in January of 2014, some large employers are finally going on record with their thoughts about their post 2014 health reform strategies.  Take a look at the following article and video to see the honest and reasonable business reaction to some of the new employer mandate rules set to begin in January of 2014.

This is yet another unintended consequence of Health Reform and an unfortunate byproduct of the way this legislation was passed.  Employers who were accustomed to building and managing a full-time workforce will now have a financial incentive to decrease their full-time employees and increase their part-time workforce. Employees who are accustomed to (and maybe need to) work 40 hour work weeks to accommodate their lifestyle may not be able to continue to do that with one employer.  In this situation, they would still not have access to employer-provided coverage.  But, they would now need to work for 2 employers to work the appropriate hours.

This article doesn’t mention the potential impact to insurance pricing by eliminating underwriting in favor of guaranteed-issue coverage.  Older people and currently uninsurable individuals (those with existing medical conditions) will be positively impacted by new community rating rules.  However, just about everyone else will see higher average prices and have fewer coverage options.  This is obviously not the intent of the endeavor to reform healthcare.

The idea of guaranteed, unlimited healthcare for every American is difficult to oppose.  No one wants anyone who is sick to be denied the care they need to get better.  No one wants a family to suffer financially while they are dealing with a family members illness as well.  No one thinks of (or even believes they should think of) cost when a loved one is ill.  However, no one expects physicians/hospitals/device/pharmaceutical companies to work for free and no one wants  to volunteer to work for less.

This could become a BIG issue and will ultimately force another patchwork of legislation to address.



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