Obamacare penalizes employers for full-time (FT) employees that are not insured if they don't offer affordable and essential coverage. Employers will obviously look for ways to minimize this damage. One way is by turning FT workers into part-time (PT) employees.
http://nrn.com/article/restaurants-mitigate-health-care-costs-cutting-hours
Darden Restaurants runs over 2000 restaurants, they are testing working employees 29 hours. I have heard of nursing homes in OH that are also moving their FT to PT.
You would think this is a problem for employees, having their hours cut, are they going to have to find second jobs? Turns out it might be win win for everyone but the taxpayors.
Someone working full time making $9.50 per hour makes $1646.92. If they have their hours cut to 5 3/4 a day they would make $1,183.72, a pay cut of $463.20...or is it.
With two people in the household working full time they do not qualify for Food Stamps. Working 2.25 hours less they qualify for $367 a month in benefits.
Once you qualify for food stamps you automatically qualify for a free lifeline cell phone, worth about $30 per month.
They would also now qualify for utility assistance.
Instead of paying 9.5% of their income to be on their company plan they pay 2% under the exchange saving an additional $88.78 per month.
Not counting any other additional programs and assistance, by working fewer hours these employees gain $485.78 in taxpayor funded benefits to offset $463.20 in lost wages. The employer also avoids any taxes for not offering coverage.
Besides all of the problems Obamacare creates for the insurance industry it is likely to push millions more into poverty with even fewer chances to get out.
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