NBC: Yes, employers are cutting hours to avoid ObamaCare

posted at 10:41 am on August 14, 2013 by Ed Morrissey

No surprise here for Hot Air readers, but perhaps NBC News viewers experienced some shock to hear the results of the perverse incentives of the Affordable Care Act.  Long after the trends toward part-time work developed, NBC confirms that employers are indeed looking to avoid the costly mandates of ObamaCare by transforming their staffs into part-time workers:

Employers around the country, from fast-food franchises to colleges, have told NBC News that they will be cutting workers’ hours below 30 a week because they can’t afford to offer the health insurance mandated by the Affordable Care Act, also known as Obamacare.

“To tell somebody that you’ve got to decrease their hours because of a law passed in Washington is very frustrating to me,” said Loren Goodridge, who owns 21 Subway franchises, including a restaurant in Kennebunk. “I know the impact I’m having on some of my employees.”

Goodridge said he’s cutting the hours of 50 workers to no more than 29 a week so he won’t trigger the provision in the new health care law that requires employers to offer coverage to employees who work 30 hours or more per week. The provision takes effect in 16 months.

Actually, the law puts it into effect in just four-plus months.  The only reason it’s 16 months is that the Obama administration insists it can just ignore statutes, even those it pushed through Congress.  The courts may have something to say about that, but either way, businesses aren’t waiting around for the enforcement effort to start.

The White House pushed back, calling NBC’s report “anecdotal”:

The White House dismisses such examples as “anecdotal.” Jason Furman, chairman of the president’s Council of Economic Advisors, said, “We are seeing no systematic evidence that the Affordable Care Act is having an adverse impact on job growth or the number of hours employees are working. … [S]ince the ACA became law, nearly 90 percent of the gain in employment has been in full-time positions.”

Since the beginning of the year, though, that number has flipped entirely.  In the first six months of the year, 97% of net job growth has come from part-time positions, according to the former head of the Bureau of Labor Statistics.  That comes from businesses reacting to the approach of the mandate, whether that’s in four months or 16.  Businesses plan for jobs and costs on a year-to-year basis, so it should be no surprise that hiring in 2010 and 2011 would have disregarded the implications of the ACA.  Starting in 2012, though, businesses had to start taking the costs associated with ObamaCare more seriously, and this reaction is the rational result of those incentives.

Speaking of incentives, guess which full-time workers don’t want ObamaCare?  The same ones whose unions pushed it in 2009 and 2010:

new survey of 2,500 federal employees and retirees found that 92.3 percent believe federal workers should keep their current health insurance and not be forced into ObamaCare.  Only 2.9 percent say they should become part of the new health insurance exchanges.

I suspect a similar percentage of private sector employees would also like to keep their coverage, but most won’t get that option.  What I’d like to know is how many of those federal employees so eager to avoid ObamaCare themselves supported forcing everyone else in it.

There’s more.  The survey, conducted byFedSmith.com, “an information portal for sources of information impacting the federal community and those interested in the Federal Government’s activities,” found that 96.1 percent think federal retirees should be able to stay with their retirement health insurance.  Only 3.9 percent think they should get “Medicare in lieu of their current option.”

To put it simply: Federal employees and retires almost unanimously prefer to stay in their generous taxpayer-funded health insurance program, known as the Federal Employees Health Benefit Plan (FEHBP), rather than being dumped into liberalism’s two greatest monuments to government-run health insurance, ObamaCare and Medicare.

Speaks volumes, doesn’t it?

It does prompt questions about who works for whom in this republic.


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Careful what you wish for??? Watch this one carefully. If he pulls another subsidy for all federal employees, Justice Roberts may want to revisit the “it’s a tax” logic. Tax cuts cannot be dished out from the executive branch. Eliminating all waivers will result in collapse from within.

teejk on August 14, 2013 at 10:48 AM

Take Obama to court GOP

Time to bring a gun to a knife fight

cmsinaz on August 14, 2013 at 10:49 AM

Nothing a Domestic Security Force can’t change. It’s amazing what sort of cooperation you can get by putting the muzzle of an AK against someone’s temple.

Bishop on August 14, 2013 at 10:49 AM

It does prompt questions about who works for whom in this republic.

Yeah, just shut up and pay your premiums for Obamacare. There is some Congressional staffer making $175K/year counting on you. Personally, I think we should be able to get a picture of “our” staffer along with a letter thanking us for our contribution to his/her well-being.

Happy Nomad on August 14, 2013 at 10:51 AM

Plus, 93% of federal workers reject ObamaCare.

…what you eat with is a forbidden word on HA…so I will retain comment…so as to comment otherwise…

Egypt is about to go into a civil war. Over 100 dead today.

Schadenfreude on August 14, 2013 at 10:51 AM

Employers around the country, from fast-food franchises to colleges, have told NBC News…

Which happened right after the employers asked NBC what rock they’ve been living under for the last three years. And the NBC audience is actually going think this is news

RadClown on August 14, 2013 at 10:52 AM

All we need is about another 20 million Rip Van Winkles to wake up to the worst administration evah!!

Deano1952 on August 14, 2013 at 10:52 AM

Nothing a Domestic Security Force can’t change.

Bishop on August 14, 2013 at 10:49 AM

Something like that probably, before it’s over.

petefrt on August 14, 2013 at 10:53 AM

NBC: Yes, employers are cutting hours to avoid ObamaCare

obama and his cabal: “Phony scandal.”

Pork-Chop on August 14, 2013 at 10:54 AM

This dumb, very dumb chick on Faux just said that “no jokes about Amer. presidents s/b made”.

Marth McCulll…one of the dumb Faux chicks, of which there are so many, said “I wouldn’t let my kids laugh at that because it’s truly un-American…”.

I turned off the TV. What is more American than being able to make fun of the president? In communism they couldn’t tell their cousins jokes, out of fear to be turned in.

Now America sensores people who make fun of leftist presidents, but it’s ok to burn, hang, run over with a bull (yes it was done to GWB), cut his throat…so long as it’s a R presi…

Oh well, good night America. All leftists, I hope you get exactly what you want. I’ll laugh at your heads being cut off.

Oh, you say it’s not on topic – all is on the same topic. If you have no freedom to speak, you have no freedom over your healthcare either.

Schadenfreude on August 14, 2013 at 10:55 AM

Speaking of incentives, guess which full-time workers don’t want ObamaCare?

Obamacare exemption — none dare call it treason

Resist We Much on August 14, 2013 at 10:58 AM

Which happened right after the employers asked NBC what rock they’ve been living under for the last three years. And the NBC audience is actually going think this is news

RadClown on August 14, 2013 at 10:52 AM

When the rat-eared one was on the campaign trail last year, part of his speil was how silly it was that anybody would think that Obamacare would cut peoples jobs to part-time. That was supposedly just Republicans who didn’t want him to have a second term because he was black.

Well NBC, better late than never. Not that you’ll ever make the causal connection between the bastard in the White House and the economic failures of the last five years.

Happy Nomad on August 14, 2013 at 10:59 AM

Schadenfreude on August 14, 2013 at 10:55 AM

Schad, have you seen my ‘toon selection for today? There’s one for you at the bottom.

Resist We Much on August 14, 2013 at 10:59 AM

Jason Furman, chairman of the president’s Council of Economic Advisors, said, “We are seeing no systematic evidence that the Affordable Care Act is having an adverse impact on job growth or the number of hours employees are working.

Of course you’re not seeing it. You have your eyes closed.

Bitter Clinger on August 14, 2013 at 11:01 AM

Nothing to see here
-wh

cmsinaz on August 14, 2013 at 11:03 AM

Meet the Press has recently fallen to a 21-year low.

Living up to the fine traditions of sister station MSNBC, I guess. Who would have thought putting in an idiot with good hair would have turned off even the low informations?

Happy Nomad on August 14, 2013 at 11:04 AM

Democrats shoved it down America’s throat and this is the result. Every individual who voted Democrat deserves this!! A law not one Republican voted for and yet Democrats are still in love with their King! Horrible Law.

karlinsync on August 14, 2013 at 11:05 AM

Can someone explain to me, what’s the point of having the employer mandate AND the exchanges? Personally, I don’t mind the idea of exchanges, and I know a few people who could benefit from them if they are implemented the right way. But, I think if they got rid of the employer mandate, it would force a lot more people into the exchange pool which could make the exchanges a lot more attractive. The mandate part is just their giveaway to big insurance, isn’t it?

legalimmigrant on August 14, 2013 at 11:06 AM

Sophie, I have not, but will look now.

Have you seen the Russian painter link I posted for you yesterday?

YOU are needed, again, at the bottom of the Cruz thread. See Dale’s comments.

Schadenfreude on August 14, 2013 at 11:08 AM

The White House dismisses such examples as “anecdotal.” Jason Furman, chairman of the president’s Council of Economic Advisors, said, “We are seeing no systematic evidence that the Affordable Care Act is having an adverse impact on job growth or the number of hours employees are working.

Hey Jason – here’s some more anecdotal evidence I hope you choke on it.

Hill60 on August 14, 2013 at 11:08 AM

Let’s see now–Obamacare will apply to everyone EXCEPT the legislators who proposed it and the president who signed off on it and the IRS who enforces it. The fact that 93% of federal employees don’t like it tells you all you really need to know. From the Obama Administration’s perspective EXCREMENT FOR THEE DOES NOT APPLY TO ME!!!! A “let them eat cake” attitude perhaps should result in an “Antoinettian” solution.

We are not only destroying the best medical system in the world to accommodate a small percentage who fell through the cracks (and even here, nearly half will still fall through the cracks!!!) plus we are destroying the economic recovery by forcing employers (for economic survival) not to hire full-time workers.Plus, as already alluded to, there will be millions of exclusions–governments workers whose ‘Cadillac Care’ is covered my middle class taxpayers. Is this is what nearly 400,000 World War II servicemen died for?

MaiDee on August 14, 2013 at 11:11 AM

RWM, you are one of the best. I wish millions of Americans had your guts and wit.

Thank God you are an American!!!

Schadenfreude on August 14, 2013 at 11:12 AM

“We are seeing no systematic evidence that the Affordable Care Act is having an adverse impact on job growth

What job growth? And by the way, when 97% of the pathetic net job growth that has occurred since January comes from part time positions there is systemic evidence!

Happy Nomad on August 14, 2013 at 11:13 AM

Take Obama to court GOP

Time to bring a gun to a knife fight

cmsinaz on August 14, 2013 at 10:49 AM

Oklahoma has sued to stop the tax credits and mandates in states that did not establish exchanges. Their suit survived a motion to dismiss by DOJ and is proceeding. Stay tuned. Some Governors have cojones, even if they are female. ;-)

rockmom on August 14, 2013 at 11:16 AM

Jason Furman, chairman of the president’s Council of Economic Advisors, said, “We are seeing no systematic evidence that the Affordable Care Act is having an adverse impact on job growth or the number of hours employees are working.

Those 3 proverbial monkeys come to mind with that statement.

chemman on August 14, 2013 at 11:17 AM

Wonder if NBC will be having to get along with less.

TimBuk3 on August 14, 2013 at 11:19 AM

Yesterday I saw a fool driving her expensive Lexus with a bumper sticker ” I love Obamacare”… As a liberal hypocrite, like al liberals, I am sure that she is not going to enroll in Obamacare but rather keep her more efficient healthcare insurance…

mnjg on August 14, 2013 at 11:19 AM

I own a small professional services business with a partner. Our plan premiums have gone up 300% over 5 years ago.

We used to pay 100% of our employees’ and dependents’ premiums. When premiums started rising, we began paying only half of dependents’ premiums.

The we switched to a high-deductible plan with an HSA and contributed as much to our employees’ HSAs in pre-tax dollars as the law allowed. We made up the entire deductible in HSA contributions.

Then we cut the HSA contributions to compensate for more premium increases.

This year we eliminated company contributions to HSA accounts. Next year we will not pay for dependents’ premiums and ask employees to make up the increase in premiums.

The Obama voters in the company don’t believe this is because of Obamacare.

InterestedObserver on August 14, 2013 at 11:21 AM

The Obama voters in the company don’t believe this is because of Obamacare.

InterestedObserver on August 14, 2013 at 11:21 AM

Of course not. They have been told that any increase is strictly due to evil corporate greed.

Happy Nomad on August 14, 2013 at 11:26 AM

Excellent Rockmom

cmsinaz on August 14, 2013 at 11:27 AM

Obamacare is the dems tar baby, it sure would be nice if we had an opposition party that could something with that fact

DanMan on August 14, 2013 at 11:28 AM

To make it more complete:

Obamacare will apply to everyone EXCEPT the legislators who passed it (taking bribes and kickbacks in the process), the president who signed off on it , the judges who sustain it, the IRS who enforces it and the government bureaucrats who administer it.

MaiDee on August 14, 2013 at 11:29 AM

Wait, they’re dismissing the concerns because they’re anecdotal? They used nothing BUT anecdotes to shove the law through in the first place.

How long before there’s a law saying employers can’t cut hours?

changer1701 on August 14, 2013 at 11:30 AM

Schadenfreude on August 14, 2013 at 10:55 AM

Tiny brained blonde Martha is the main reason I quit watching Fox News about 2 years ago. Well…..Brian and Doocy, too. They’re so lame, it’s painful to watch them.

Hear she’s being replaced anywayz. Too late, IMHO.

avagreen on August 14, 2013 at 11:31 AM

Keep Obama in president, you know? He gave us a phone! He gonna do more!

Galtian on August 14, 2013 at 11:37 AM

Oklahoma has sued to stop the tax credits and mandates in states that did not establish exchanges. Their suit survived a motion to dismiss by DOJ and is proceeding. Stay tuned. Some Governors have cojones, even if they are female. ;-)

rockmom on August 14, 2013 at 11:16 AM

.
Hallelujah, and God Speed!

Luv me some Okies. :)

avagreen on August 14, 2013 at 11:41 AM

So why won’t libfree admit this?

Chuck Schick on August 14, 2013 at 11:41 AM

Would it surprise anyone if Obama, about a month after the law was supposed to go into effect, said, “Oops, my bad. I can’t delay the law. It’s in effect as of right now.”

The result? All those employers who relied on the one-year delay to hold-off on cutting back on employment, or cutting back on the number of full-time employees, would be stuck.

The answer? Never ever trust Obama. If you rely on that rule, you’ll be better off. You won’t be well, because you’ll never be well so long as Obama is in the White House, but at least you’ll be protecting yourself.

Mdirmeie on August 14, 2013 at 11:44 AM

Long after the trends toward part-time work developed, NBC confirms that employers are indeed looking to avoid the costly mandates of ObamaCare by transforming their staffs into part-time workers:

Ed Schultz, Al Sharpton, and the rest of the MSNBC crowd are calling for an immediate retraction or MSNBC will secede from its union with NBC.

BuckeyeSam on August 14, 2013 at 11:54 AM

avagreen on August 14, 2013 at 11:31 AM

I hope so…but lately there are so many dummies on, that it’s hurl-inducing.

Schadenfreude on August 14, 2013 at 11:59 AM

rockmom on August 14, 2013 at 11:16 AM

Indeed, and it could defund the monster.

Schadenfreude on August 14, 2013 at 12:02 PM

The White House pushed back, calling NBC’s report “anecdotal”:

Anecdotal? You mean like all those sob-story health-scare cases used to try to gin up support before ObamaCare was passed? Anecdotal cases that are always used to try to paint Republicans or conservatives as heartless evil-doers who will give you cancer and hope you die?

gwelf on August 14, 2013 at 12:03 PM

Oklahoma has sued to stop the tax credits and mandates in states that did not establish exchanges. Their suit survived a motion to dismiss by DOJ and is proceeding. Stay tuned. Some Governors have cojones, even if they are female. ;-)

rockmom on August 14, 2013 at 11:16 AM

Been following this for a few months since NRO first reported on OKs AG pushing this. According to the article, the law doesn’t allow for mandate or credits if the state doesn’t set up the exchanges. This would essentially free companies and individuals from the onerous effects of the law.
If OK is successful, all of the states who have refused O-care will be looking for places to put all the companies who want to relocate.

Hallelujah, and God Speed!

Luv me some Okies. :)

avagreen on August 14, 2013 at 11:41 AM

We love ya right back! (Although I’m now 1 state north.)

questionmark on August 14, 2013 at 12:03 PM

To what rockmon said.

Schadenfreude on August 14, 2013 at 12:05 PM

Schadenfreude on August 14, 2013 at 12:02 PM

Thanks for that link-much more in depth than the NRO article from awhile back.
As a (displaced for now) Sooner, I’m glad to see my home state pushing this. I’d have thought Rick Perry would have brought TX into this also, and I’ve sent an Email to Brownback here in KS to bring this up, but only got a robo-response.

questionmark on August 14, 2013 at 12:10 PM

Sorry, s/b rockmom.

Schadenfreude on August 14, 2013 at 12:18 PM

Indeed, questionmark, and you’re welcome.

Schadenfreude on August 14, 2013 at 12:20 PM

The White House pushed back, calling NBC’s report “anecdotal”:

“Anecdotal” reports only count when they support your agenda.

GarandFan on August 14, 2013 at 12:22 PM

It does prompt questions about who works for whom in this republic.

The “republic” died in 2008, and has turned into a oligarchical police state…

PatriotRider on August 14, 2013 at 12:24 PM

Even if the failure of Obamacare were to lead to a government run single payer system (which I am against), think about the damage and suffering Obamacare will incur to both individuals and businesses while it fails and a new system is set up.

We truly do need a peaceful revolution in this country. If only we could find the patriots to lead us.

lea on August 14, 2013 at 12:29 PM

Hah, the stupid Rs.

Schadenfreude on August 14, 2013 at 1:43 PM

questionmark on August 14, 2013 at 12:03 PM

Not exactly exact – what it means that employers in that state who cut loose their employees would result in those employees not receiving a subsidy to enroll in federally sponsored exchanges. Additionally, it may shield the employer from paying the fine for not providing health care but I am less certain on this.

The plan is to push ahead – force employers to intentionally screw their employees and then have the feds swoop in with single payer – of course, single payer is going nowhere. There is no legislative momentum to pass it.

Zomcon JEM on August 14, 2013 at 3:45 PM

Hah, the stupid Rs.

Schadenfreude on August 14, 2013 at 1:43 PM

How true….HOW F@%&ING TRUE!

timberline on August 14, 2013 at 4:13 PM

[S]ince the ACA became law, nearly 90 percent of the gain in employment has been in full-time positions.”

Maybe because the full implementation of the PPACA was scheduled as starting in late 2013 and since that was several years away when the PPACA was passed, the prospect that maybe the PPACA may be rolled back, seriously delayed, or repealed (say by a different administration) employers did not want to proceed with a course of action that would upset their work forces especially if it turned out to be unnecessary.

Now that the last real chance to seriously change, delay, or repeal the PPACA appears to have ended, more or less, with the 2012 re-election of Obama, it is now time to get busy mitigating the anticipated damage as best as they can and so they have.

Might also infer that a fair proportion of those full-time positions may be government jobs?

Russ808 on August 14, 2013 at 5:10 PM

Happening at my workplace. They were quite forthright about citing Obamacare as the cause.

Oink on August 14, 2013 at 6:45 PM

A lot of Obama voters won’t be happy at all with Obamacare. But hey, they had no choice but to vote for him, because Romney spoke out of turn.

ardenenoch on August 14, 2013 at 6:54 PM

Wow, who could have seen this coming?

The GOP needs some balls. They need to request that the law be enacted as written, or thrown out entirely. They need to demand that privacy restrictions are in place on day one of it going into effect.

And they need to demand an immediate injunction against the implementation of the entire law until the administration can show that they are able to comply with their end of it.

Chris of Rights on August 15, 2013 at 10:12 AM