Obamacare and part-time work

ObamacareffectViewpoint

By Logan McFadden

I just read a piece on part-time work, which I believe totally missed the impact of Obamacare on part-time work.  Daily I read stories about large employers cancelling health insurance outright or reducing hours from 40 to 30 hours per week to avoid the mandatory insurance rules under Obamacare.  The Affordable Care Act is creating more McJobs and will slow down consumer spending, in my opinion.  When a “large” corporation cancels healthcare for an employee’s family or for the family and the employee, that employee is forced to purchase private insurance in the traditional market or on the exchanges or live on the edge without any healthcare insurance.

We are already learning that the cost of exchange policies are higher than those policies of the immediate past.  The benefits supposedly are more preventative care and access for millions of uninsured to medical care.  However, if people cannot afford the exchange insurance, even with the government subsidy, then how are THEY to realize the benefits?  On top of that, a penalty, or as the Supreme Court calls it a “tax”, is imposed by the IRS, thus making it a damned if you do and damned if you don’t get exchange insurance.

If you do get exchange insurance that is more expensive due to higher premiums and higher co-payments, you are going to see the middle class squeezed more than at present.  Who can manage through a major illness with a policy that pays only 60% of total medical expenses, i.e. the Bronze Plan.  On the other hand, who can afford the Platinum plan that pays 90% of medical expenses.

Baby boomers on Medicare will experience  far worse economic consequences than they ever planned on.

The other downside of Obamacare will be the reduction of treatment plans currently provided by Medicare law.  For example, the “panel” will restrict the number of people covered for cataract surgery based upon some more restrictive guidelines.  I am having cataract surgery in December just to get it done under my employer health plan.  I might otherwise have waited longer.

I would like to see Citizens Journal address the impact of Obamacare on part time work.  I don’t believe that people are suddenly electing to work shorter hours just to spend more time with the kids.  These same kids will have less discretionary income to spend.  The teenage market (teens and people in their 20’s)is a big time contributor to consumer spending and a demographic which advertisers spend millions of dollars to attract.  We, at the same time, are seeing people in their 20’s accepting a McJobs because the economic recovery is too slow to generate full time work.  My brother owns his own small business and relies on his wife’s employment to provide health insurance for the family.  She has had up to three jobs at the same time, with periods when she did not have even one job that qualified them for employer paid healthcare.

One outcome of corporations cancelling health care plans, is more profits and thus good news for investors.  What is good news for some is often bad news for others.  I went to a new barber today.  He is a Libertarian and admits that he and his family are living in their own “bubble world”.  He is well aware of the government’s intrusion and the resulting loss of personal choices.

Logan McFadden has been in banking 30 years.  He enjoys movies based on true stories and is slowly dipping his toe into politics.  Standing for conservative principles is more important now than ever before. Get involved.

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Logan McFadden has been in banking 30 years.  He enjoys movies based on true stories and is slowly dipping his toe into politics.  Standing for conservative principles is more important now than ever before. Get involved. 

 

Editor’s note: here’s another interesting article on this: http://www.freeenterprise.com/economy-taxes/long-misery-obamacare-and-rise-part-time-economy

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