ObamaCare Forcing Employers to Cut Hours, “Phase Out Full-Time Work”

The president’s political allies are ramping up their campaign to convince Americans to buy into the president’s health care law, but for the thousands of workers whose full-time jobs are in jeopardy, that’s going to be tough sell.  As The Washington Times reports, ObamaCare “is prompting employers to hire more part-time and temporary workers to escape paying benefits under a mandate that goes into effect next year, amplifying a trend toward transient employment that took hold during the recession.”  Low-income workers are “hardest hit by the move toward cutting work hours and increasing temporary hiring,” the Times adds, with “more than a quarter of part-time workers…holding down two or more jobs to make ends meet.”  Several recent headlines from newspapers across the country underscore the impact ObamaCare is having on part-time workers’ hours, and their hope of finding full-time work:

  • CALIFORNIA: “‘Obamacare’ benefits mandate could further phase out full-time work” (Los Angeles Times, 5/2/13)
  • GEORGIA: “Regal cutting theater workers’ hours due to Obamacare” (Atlanta Journal-Constitution, 4/17/13)
  • INDIANA: “School part-timers fear fewer hours, less pay as impact of health care law kicks in” (Indianapolis Star, 6/16/13)
  • MISSOURI: “‘Involuntary’ part-time jobs are growing” (Kansas City Star, 5/27/13)
  • NEBRASKA: “The cost of progress? School districts cut part-time hours to save cash” (Omaha World-Herald, 5/23/13)
  • NEW YORK: “Companies cut part-time worker hours to avoid Obamacare requirement: report” (New York Daily News, 5/2/13)
  • NORTH CAROLINA: “Some NC employers cut worker hours to avoid cost of health care reform” (News Observer, 6/1/13)
  • OHIO: “Unhealthy side effects, Employers seek ways to avoid health-care law’s burdens” (Columbus Dispatch Editorial, 4/14/13)
  • PENNSYLVANIA: “Southern Lehigh to reduce part-time hours to avoid Obamacare” (The Morning Call, 6/13/13)
  • UTAH: “Part-time America gets push from health care law.”  (Deseret News, 4/26/13)

For the part-time workers forced to purchase insurance on their own, the news gets worse.  A recent report released by the Ohio Department of Insurance found that individual premiums in Ohio will spike by 88 percent under ObamaCare – costing Ohioans nearly $200 more in health costs each month.  The same is true in Georgia, where one insurer estimates that “the average middle-age family of five will pay about 45 percent more for medical coverage in October under federal health reform,” The Florida Times-Union reports.  These anticipated price hikes are consistent with a report by the House Energy & Commerce Committee that found that premiums on the individual market are expected to increase 100 percent on average, with rate hikes as high as 400 percent in some areas.  

With ObamaCare forcing employers to cut hours and jobs, and driving up the cost of insurance, House Republicans have made full repeal of the law part of our Plan for Economic Growth & JobsFully repealing ObamaCare, as the House voted to do in May, will remove one major barrier small businesses and manufacturers say makes it harder to create jobs.  And it will also help families facing major rate hikes next year, at a time when they are already struggling with higher costs on everything from gas to groceries. 

Learn more about the Republican Plan for Economic Growth & Jobs at gop.gov/jobs.