Video: NJPP's Raymond Castro Explains That Cutting Hours to Avoid Obamacare Penalties is Counter-Productive
NJPP senior policy analyst Raymond Castro was featured on NJTV’s NJ Today news program Wednesday night on a segment detailing how some New Jersey towns are cutting employee hours to prepare for the employer mandate provision of health care reform. But as Castro notes, cuts to employee hours to avoid Obamacare penalties are counter-productive.
“The economics just don’t work. When you convert someone to a part-time position, that creates all kinds of additional costs such as you’re going to have less skilled workers, you have to provide more training. There are a lot of additional costs,” Castro said. “Is it really worth it to convert a position like that so you can avoid only a $2,000 penalty?”
Castro says tax credits will reduce some costs for employers and exchanges will offer affordable health care options for individuals.
“Even with those employers who decide to cut back, the employee is going to be covered. They will still be able to go to the exchange,” Castro said.