Howard Rich of Americans for Limited Government takes to the pages of Investors Business Daily to discuss the impact of the Patient Protection and Affordable Care Act, now that the election results means it is here to stay. Along with the mandate on individuals to carry health insurance or be fined, Obamacare also requires employers to provide coverage to employees working thirty hours or more per week.
“Not only will this mandate prevent job growth among small businesses, it will also result in fewer hours and less income for workers at larger companies. These are people struggling to make ends meet on limited income — people who cannot afford to lose these hours.”
Rich notes that Darden Restaurants, which employs 185,000 nationwide in popular chains like Olive Garden, announced last month it was reducing many employees’ schedules to twenty-eight hours a week. Kroger, a grocer with 350,000 employees, is making a similar move and will restrict part-time personnel to twenty-eight hours.
“In other words ObamaCare’s “employer mandate” will wind up hurting the very people Obama claims to be fighting for — reducing their take-home pay at a time when loose monetary policy is already whittling away at the value of every dollar they earn.”
The other possibility here – one that will be harder to detect and report – is that some employers will simply follow the law by providing insurance, but offsetting the cost through lower or stagnant wages. Or prices will simply rise, etc.
There simply is no such thing as a free lunch.