Obamacare Uncertainty Causes Preemptive Changes to Employee Benefits
Given the partisan bickering and failure of many states to set up healthcare exchanges, the ultimate ramifications of the Patient Protection and Affordable Care Act–colloquially referred to as “Obamacare”– is uncertain. This uncertainty has resulted in employers choosing to preemptively change employee benefits.
Wegmans, once applauded for providing health insurance for part-time workers, may no longer offer that benefit. According to some employees of Wegmans, the store has decided to cut healthcare benefits, even though Obamacare does not require employers to provide health insurance coverage to part-time employees. In the event that Wegmans does cut benefits for part-time employees, it may result in lower healthcare costs for the company, while also allowing part-time employees to qualify for subsidized coverage. Just like the current status of the law, the impact of Wegmans’ decision is cloaked in uncertainty.
Zachary R. Fowler provides litigation support to businesses of all sizes in matters concerning employment discrimination and contract disputes.