Wednesday, January 14, 2015

Goodman's survey on ObamaCare's impact on fast-food employees

From Goodman's WSJ article on his December survey of 136 fast-food restaurants/franchisees with about 3,500 workers...

About half of the employees had been “full time” (as defined by ObamaCare: 30+ hours per week). The potential cost to the employers: about $7 million per year. 

"But by the time the employers took advantage of all their legal options they were able to reduce their cost to less than 1% of that amount. The first step was to make all hourly workers part time...By the end of 2014, 58 employees had crossed the line to full-time status and were eligible for mandated health insurance in 2015...The companies in the survey offered to pay the full premium for the mini-med plans, in order to make that alternative more attractive. If employees choose the bronze plan it costs the employers about six times as much. The result: Only one of the 58 remaining full-time employees enrolled in a bronze plan; the rest will likely be in MEC plans."

And then there are the families of these workers, which are not covered by employers! Goodman found premia that were 70% of monthly wages for a bronze plan and 25% of wages for a mini-med plan. If not bought, the family ineligible for premium subsidies on an insurance exchange and faces a fine on April 15th. 

"To recap: Almost half the workforce of these restaurants was involuntarily reduced to part time and has less income as a result. These employees have also lost the opportunity to have the coverage they most prefer: mini-med plans that pay for medical care they are most likely to need. Out of 3,500 employees, only one...got the kind of insurance that the architects of the Affordable Care Act wanted everyone to have."

This is impressively bad, even for the government. Congrats!

1 Comments:

At June 2, 2015 at 5:30 AM , Blogger Drew Watts said...

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