Labor Unions: Obamacare Will 'Shatter' Our Health Benefits, Cause 'Nightmare Scenario

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Labor Unions: Obamacare Will 'Shatter' Our Health Benefits, Cause 'Nightmare Scenario

23 July 2013, 12:08

Labor Unions: Obamacare Will 'Shatter' Our Health Benefits, Cause 'Nightmare Scenarios'

http://www.forbes.com/sites/theapothecary/2013/07/15/labor-leaders-obamacare-will-shatter-their-health-benefits-cause-nightmare-scenarios/

Labor unions are among the key institutions responsible for the passage of Obamacare. They spent tons of money electing Democrats to Congress in 2006 and 2008, and fought hard to push the health law through the legislature in 2009 and 2010. But now, unions are waking up to the fact that Obamacare is heavily disruptive to the health benefits of their members. Last Thursday, representatives of three of the nation’s largest unions fired off a letter to Harry Reid and Nancy Pelosi, warning that Obamacare would “shatter not only our hard-earned health benefits, but destroy the foundation of the 40 hour work week that is the backbone of the American middle class.”

The main rub is:

Employers have incentive to turn full time employees into part time workers and to hire more part time workers so that they escape having to buy medical insurance for their employees.

Employers have incentive to offer "minimum essential coverage" to their employees if they don't provide coverage to all their full time employees. This is because of the strong and weak penalty provisions of the law. Full time employees who have good insurance are likely to have it replaced with "minimum essential coverage".

If you like your coverage, you can keep it.

In response, President Obama has said he will delay these requirements for 1 year?

Obama administration to delay part of Affordable Care Act

http://www.usatoday.com/story/news/politics/2013/07/02/obama-delay-health-care-law/2484623/

Administration delays penalties for large employers that don't provide insurance in 2014.

Walmart has already responded by reducing their full time work force.

Obamacare Is Turning Walmart Workers Into Temps

http://www.forbes.com/sites/lauraheller/2013/06/14/obamacare-is-turning-walmart-workers-into-temps/

Walmart increases its part-time ranks to avoid Obamacare. But it could all backfire.
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