Obamacare Forces Indiana Schools to Cut Employee Hours

  • Posted by a hidden member.
    Log in to view his profile

    Jun 10, 2013 10:37 PM GMT
    Those mean people running those Indiana schools!


    Indiana schools' dilemma: Offer health insurance to part-timers or cut hours

    Schools across Indiana are cutting back the hours of teacher assistants, bus drivers, cafeteria workers and other aides to avoid having to offer them health insurance under the federal health care employer mandate that begins next year.

    "We cannot go out and raise the price of our product to assist us covering this. We would have to go the taxpayers and ask for some type of increase and I just don't see that happening," said Les Huddle, superintendent of the Lafayette School Corporation, where more than 150 of the school's approximately 600 non-certified employees have had their hours reduced to meet the federal definition of part-time.

    The Shelbyville Central School System likewise is cutting back the hours of about 100 instructional aides as well as hours for some substitute teachers, bus drivers and coaches.

    "When they were writing this law, did they really think about the 7th and 8th grade basketball coach or the substitute teacher or the part-time instructional aide?" said superintendent David Adams. "I'm not sure that that's what this law was written for. Schools have some special situations that you don't maybe get in the business world."

    The 2010 Affordable Care Act, commonly known as Obamacare, requires employers with at least 50 full-time workers to offer health insurance to those working at least 30 hours a week. If they don't, they face a financial penalty.

    Dennis Costerison, executive director of the Indiana Association of School Business Officials, said that, aside from how much funding schools receive from the state, complying with the health care law is the biggest issue facing school officials.

    "What I'm seeing across the state is school districts, unfortunately, having to reduce the hours that they're having some of their folks work, primarily so they don't have to worry about the penalties, or they don't have to provide them health insurance, which would be very, very costly," Costerison said.


    http://www.courier-journal.com/article/20130608/NEWS02/306080064/Indiana-schools-dilemma-Offer-health-insurance-part-timers-cut-hours?nclick_check=1
  • Posted by a hidden member.
    Log in to view his profile

    Jun 10, 2013 10:57 PM GMT
    The "Affordable Healthcare Act" is stupid.

    But expecting it to be awesome from the beginning is also stupid. Any new legislation will have bugs that need to be worked out. That can only be expected. Posting threads about it on the internet is just as stupid as the people who wrote the Act in the first place.

    Personally, I won't be buying health insurance until the semantics are worked out in my favor. Until then, as a self-employed person, it's cheaper for me to pay my medical bills as they arise...which are WAY less than I'd pay with health insurance (all total, my life's medical bills have been under $15,000 - not bad for a 42 year old).
  • Posted by a hidden member.
    Log in to view his profile

    Jun 10, 2013 11:00 PM GMT
    Wow, that's great - you're lucky having had so few medical bills so far.

    I think the problem is that all these people are the victims of bad planning. They probably didn't have employer-sponsored health insurance to begin with, but at least they were working more than 30 hours. Now, they are still going to be without employer-sponsored health insurance AND they will be working under 30 hours so their take-home pay will be significantly less.
  • carew28

    Posts: 661

    Jun 11, 2013 8:42 PM GMT
    It's too bad that this is happening. At least, although their hours and paychecks are going to be cut, they will now have access to medical care and health-insurance that will be affordable, based upon what their actual income is. I realize that this is small consolation for the reduction in their income, which probably was low-income to begin with.

    I wonder what the school systems are going to do now to make up for the reduced hours for teachers' aides, part-time coaches, busdrivers, substitute-teachers, etc. Are they going to hire more part-time employees ? In some school systems, which have reduced fulltime staff through layoffs and attrition, they are already on skeleton crews, and I don't see any alternative other than hiring more part-timers, albeit with reduced hours.

    This is what happens when the government tries to come up with a hybrid health-insurance system, which combines public (government) health-insurance with private health insurance corporations. A single-payer national health insurance system, similar to what's in place in Europe, would eliminate problems like this.
  • Posted by a hidden member.
    Log in to view his profile

    Jun 11, 2013 9:33 PM GMT
    Here's a Forbes writer who also writes for Fox Business:
    http://www.forbes.com/sites/theyec/2013/04/22/is-the-affordable-care-act-really-bad-for-business/

    It appears that the employer and the employee share the cost of the monthly premiums for health insurance.

  • Posted by a hidden member.
    Log in to view his profile

    Jun 12, 2013 11:57 AM GMT
    meninlove said Here's a Forbes writer who also writes for Fox Business:
    http://www.forbes.com/sites/theyec/2013/04/22/is-the-affordable-care-act-really-bad-for-business/

    It appears that the employer and the employee share the cost of the monthly premiums for health insurance.



    And look at the date of the article. Given that it's still up in the air where premiums are going to fall - and given the details that have been emerging since the article has been written - it's quite likely that the premiums are going to be significantly more than what they were before (which is of course, before subsidies).

    And to say that the employer and the employee share the cost of the monthly premiums? No. The employer will factor the cost in as part of the total cost of the employee. The employee effectively will bear the entire cost of the premiums.