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Friday, July 12, 2013 1:04 AM

"Win-Win" Situation for Employers to Not Offer Healthcare to Part-Time Employees; Now Ain't That Special?

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The peculiarities of Obamcare keep piling up. Here's the latest: Wegmans, a Rochester-based grocery store has decided to do something beneficial for its part-time employees, stop health care insurance.

The reason? Employers and employees alike are better off if the employer does not offer health-care benefits to part-time employees.

Please consider Wegmans cuts health benefits for part-time workers.

Et tu, Wegmans?

The Rochester-based grocer that has been continually lauded for providing health insurance to its part-time workers will no longer offer that benefit.

The company said the decision was related to changes brought about by the Affordable Care Act.

Part-time employees may actually benefit from Wegmans’ decision, according to Brian Murphy, a partner at Lawley Benefits Group, an insurance brokerage firm in Buffalo.

“If you have an employee that qualifies for subsidized coverage, they might be better off going with that than a limited part-time benefit,” Murphy said.

That’s because subsidized coverage can have a lower out-of-pocket cost for the insured employee while also providing better benefits than an employer-paid plan.

Under the Affordable Care Act, part-time employees are not eligible for health insurance subsidies if their employer offers insurance.

“It’s a win-win. The employee gets subsidized coverage, and the employer gets to lower costs,” Murphy said.

Wegmans employs roughly 1,433 full-time employees and 4,304 part-time employees in the Buffalo Niagara region.
Now Ain't That Special?

Part-timers are better off with no company health-care offering than with one. Fancy that. Now just imagine the temptation for employers to reduce someone from 32 hours (considered part-time before Obamacare) to 29 hours or 25 hours because the Obamacare definition sets the definition of part-time at 30 hours.

That's pretty special too, and I have just the tribute to offer.

Link if video does not play: Church Lady Chat With Hillary Clinton

The Obamcare effect is real. The distortions are complicated, numerous, and not widely understood.

Obamacare Economic Distortion Synopsis

For more on Obamacare Economic Distortions, please peruse the above links to your heart's content.

Mike "Mish" Shedlock

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