Did you hear the same news we did?
First we heard the news on the radio, and then we received this NY Times article in our email box and knew we had to share it with you!
The nonpartisan Congressional Budget Office (CBO) released their analysis showing that, because of the Affordable Care Act (ACA), two million full time employees are choosing to cut back on their work hourse to part time. See, before the ACA was in effect, these employees had to work full time in order to receive their company’s health insurance benefits. Now that the ACA has provided these employees an alernative way to afford health insurance, they are giving themselves permission to cut back their hours.
“The cumulative reduction of hours is large: the equivalent of 2.5 million fewer full-time positions by 2024, the budget office said.”
Interestingly, we heard some on the radio claiming that it is the ACA itself that is killing jobs. They said their disallusionment was because the CBO previously projected a smaller impact. They pointed to “the report as evidence of the health care law’s adverse effect on the economy.”
“For years, Republicans have said that the president’s health care law creates uncertainty for small businesses, hurts take-home pay and makes it harder to invest in new workers,” Speaker John A. Boehner said. “The middle class is getting squeezed in this economy, and this C.B.O. report confirms that Obamacare is making it worse.”
Every story has at least two sides, right? So here is the Democrats’ take on the same report:
“The insurance expansion reduces the need for a person to take a full-time job just to get coverage. The premium subsidies effectively bolster household income. Higher taxes for richer households also reduce the incentive to work.”
According to the same article, there is yet another view. Here is what some employers are considering:
“to reduce employee hours to avoid the “employer mandate.” The overall demand for labor would not change, in other words, but businesses might arrange their workers’ schedules differently to avoid having to provide them with health care.”
So that’s a lot of views. What is yours? What is your take on the CBO’s report?
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