Sunday, April 7, 2013

Why Millions Will Lose Their Full Time Jobs Because of Obamacare

-Robert Wenzel
Peter Ferrara at Forbes explains:
The Obamacare employer mandate requires all employers of 50 or more full time workers to purchase the expensive insurance for those employees that Kathleen Sebelius (“The Secretary shall determine”) specifies that they must buy.  But that mandate is enforced by a penalty of $2,000 per worker, which may be only 10% of the average cost of family coverage under the Sebelius requirements.
With these kind of numbers, employers will release full time workers and replace them with part time workers, when they can. I have already reported on a college teacher that is going to have her hours cut back to part-time because of Obamacare. It is the clause referenced in the above snippet that is the reason.

How many will lose their full time jobs? Ferrara writes:
Former CBO Director Douglas Holtz-Eakin estimated in a study for the American Action Forum that more than 40 million workers would lose their employer coverage due to these perverse incentives.  It’s going to be even worse than that, when all of the cost increasing impacts of Obamacare are realized.

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