A terribly negative side of the picture in dealing with costs for Obamacare is emerging as local governments are beginning to cut hours, according to an Aug. 22, 2013, story in The Washington Post. Many financially pressed cities and counties which are being confronted with the prospect of coming up with hundreds of thousands of dollars in new health-care costs under the Affordable Care Act are instead opting to reduce the number of hours their part-time employees work.
The decisions to cut employee hours are coming 16 months before employers, which includes state and local governments, will be required to offer health care coverage to employees who work at least 30 hours a week. Some local officials have said these cuts are happening now because of labor contracts which must be negotiated in advance, or because the local governments are concerned that employees who work at least 30 hours in the months leading up to the January 2015 implementation date for Obamacare would have to be included in their health-care plans.
Reuters has reported three out of four of the nearly 1 million new hires this year are part-time and many of these jobs are low-paid. Many firms are putting full-time positions on hold and are hiring part-time employees so they won't have to worry about paying out the benefits. These realities in dealing with America's business community and local governments are now making much of the political fallout over Obamacare more painfully understandable to many people.