Employment Expert Explains Why Obamacare Has Led To Job Losses And Slashed Hours
Under the Affordable Care Act, companies with 50 or more employees are required to provide health insurance to their staff if these employees work 30 hours or more a week.
Rob Wilson, President of Employco USA, says, “Since many companies cannot afford to provide health insurance for their staff, employers have instead opted to cut their employees’ hours so that they can limit their number of full-time staff and avoid costly health insurance plans. That means that many families will be forced to have working parents with not one but two jobs…and still no insurance!”
The bad new doesn’t end there, according to Wilson. As companies hunt for the most affordable plans and try to juggle all these new costs, something has to give.
Wilson explains, “To save money, employers might select an insurance plan that has higher out-of-pocket spending or even an insurance plan that does not place a cap on individual spending. This means that employees might now get stuck with a high-cost insurance plan for the next year, potentially spending thousands of dollars out-of-pocket on their healthcare. Numerous organizations have already seen their out-of-pocket expenditures skyrocket, and everyone from college students to families have seen their healthcare costs become an expensive luxury…if not completely unaffordable.”
Employment expert explains what Illinoisans can expect in 2016
Numerous health insurers are seeking approval for rate increases in 2016. Illinois will certainly be one of the states that are affected by these premium hikes. In fact, Blue Cross and Blue Shield of Illinois is asking for an average 29 percent increase for their plans. Pennsylvania, New Mexico, Tennessee, Maryland and Oregon will request similar increases.
Rob Wilson, CEO of Employco USA, says, “It is no wonder that so many health insurers are seeking rate increases. This is the major concern that people had when Obamacare was first introduced to the nation. The reality is that money doesn’t come from nowhere: Someone was going to have to pick up the tab for the millions of Americans who are newly insured under the Affordable Care Act, and sadly, that is going to be the American people.”
The new rates will not be approved and finalized until early October. “Currently, the new premiums are still up in the air,” says Wilson, “We don’t yet know how much rates will go up or which insurers will offer the most cost-affordable plans. November 15 is the date when people can begin to sign up for new plans, so after the rates are announced, people will have some time to research their options and discover if they can still afford their current plans.”
Wilson continues, “Unfortunately, these increases are exactly why people were strongly opposed to Obamacare from the beginning. It’s not fair that the average American now has to carry the tab for the mistakes made by millionaires on Capitol Hill.”