Today Senator
Collins and others will introduce a bill in the Senate to change the ACA
definition of full-time worker from 30 hours to 40 hours. Those in favor of the
change say that the 30 hour definition is causing employers to cut back employees
hours to avoid having to offer them coverage. The problem is that the 40 hour
definition has the potential to be more harmful than the 30 hour definition.
What we are
seeing is policy by anecdote - you talk to someone who is impacted so you think
everyone is. The actual numbers tell a very different story. According
to the Bureau of Labor statistics: 7.4% of the workforce work 30-34 hours a
week, 43.8% work 40 hours a week. So having the “cliff” at 40 hours leads to
the potential for employers to drop coverage for many more employees.
Additionally,
according to the Bureau of Labor statistics, the percent of involuntary
part-time workers is actually shrinking - 18% down from its peak of 20% peak.
While those who don't get
coverage at work can go to marketplace, as more individuals qualify for
subsidies, the deficit rises. In fact,
the CBO estimated changing the ACA's definition of full-time work from
30 to 40 hours would cost the budget $57.5 billion.
To sum up, this
change would have exactly the opposite impact that its proponents say they
want. Fortunately, the President has already said he will veto the bill.
If opponents of
the law are ready to discuss changes, supporters would be ready to discuss
meaningful compromise. One tradeoff might be fixing the family glitch and the subsidy wording
in exchange for eliminating the employer mandate. Of course such a deal would have an impact on the deficit so I'm not holding my breath.
For those interested in learning more, here is some of the coverage
on the issue so far:
- Health Reform Not Causing Significant Shift to Part-Time Work But Raising Threshold to 40 Hours a Week Would Make a Sizeable Shift Likely
- The GOP's latest Obamacare "fix" will be a total disaster if it passes
- Resistance From Right Slows G.O.P. Press to Redefine Full-Time Worker
- How the GOP could unintentionally drive up Obamacare enrollment
- President rejects GOP change to ObamaCare