Dear Editor:

 

When healthcare reform's employer mandate takes effect in 2014, the unintended consequences for low-wage workers will be far from good. In 2014 employers deemed "large," many of whom hire workers who work flexible hours, such as non-medical in-home care providers, will be required to pay sixty percent of the family premium for all workers averaging thirty or more hours per week; if employers choose not to provide insurance, they must pay an annualized penalty of $2000 for each such worker.  Most employers whose workforce is primarily comprised of caregivers or other low-wage workers currently do not provide insurance simply because it is economically unfeasible to do so. The new law not only fails to remedy this scenario, it actually exacerbates it.

 

Employers providing insurance beginning in 2014 must also face a "shared responsibility" fee for fulltime workers whose family incomes are at the poverty level. In addition to the family premium fee, employers would be forced to pay between $2000 and $3000 for every employee who accesses a federal subsidy due to her family's poverty designation. 

 

Here are the inevitable consequences of this new law. Firstly, employers most likely will pay the penalty tax rather than provide insurance, as the penalty tax is far less expensive and is also more manageable. Secondly, low-wage workers at the poverty level will have fewer job opportunities. Thirdly, wage increases and other benefits will be retarded to help offset new taxes and fees. Lastly, employers will, without exception, raise prices to offset their new burden. Accordingly, everyone will end up paying for insurance that will remain elusive to obtain for many blue-collar workers.

 

Cary Rotter
Comfort Keepers, Memphis