Public sector cutting hours to avoid paying insurance under Obamacare

Much like the private sector has been doing over the past two years, the public sector across the United States is slashing hours for their employees in order to avoid paying healthcare coverage mandated under Obamacare, according to a report from the New York Times.

The Obama administration has delayed complete implementation of the healthcare law for the private and public sectors twice, but public entities have already taken measures to cut part-time shifts that affect an array of works: cafeteria workers, school administrators, police dispatchers, prison guards.

Here are just some of the examples (courtesy of Newsmax):

–          Medina, Ohio has reduced the limit for part-time employees from 35 hours per week to 29, which has hurt park inspectors, office clerks and sanitation workers.

–          Vigo County, Indiana schools have limited field trips for children and cut back on transportation for athletic events.

–          The University of Akron has slashed the hours of its 400 part-time faculty members.

Congressional Republicans are pointing to these facts as proof that Obamacare is a drain on both the public and private sectors and is hurting the national economy. With the Congressional Budget Office (CBO) report projecting job losses, the GOP may gain some support from both Democrats and voters.

“Obamacare imposes large and disproportionate costs on employers and has created a new class of employees,” Michigan Republican Congressman and chairman of the Ways and Means Committee Dave Camp said in a statement earlier this month. “Many of these people have either lost or risk losing their full-time status and are being held back through no fault of their own but instead by a misguided law.”

In addition, a report from AdvaMed discovered that the Obamacare medical device tax led to 33,000 job losses. Companies have cut 14,000 workers and made the decision not to hire another 19,000 workers because of the tax.

The 2.3 percent excise tax on gross revenues caused a majority of companies to cancel or delay capital projects, reduce or delay raises for employees and cut investments in start-up firms.

“During a time when there is bipartisan support for growing high-technology manufacturing jobs, these results should serve as a wake-up call,” AdvaMed President and CEO Stephen J. Ubl said. “As a result of the medical device tax, we have seen an unprecedented impact on jobs and key investments in R&D. The findings of the report underscore the need to repeal this tax.”

Congress hasn’t been able to find $30 billion in its budget to repeal the tax over the next decade.

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