Are job cuts a myth about Obamacare?

A new study says the Affordable Care Act might not be as dire as some people fear, with most companies sticking with full-time jobs.

By Aimee Picchi Mar 22, 2013 10:02AM

Big Business meeting -- Chaos, Digital Vision, Getty ImagesA new survey might assuage some concerns that businesses and American workers have about the impact of Obamacare.


Most businesses don't plan to shift from full-time to part-time employees as a way to skirt the law, according to a survey from the Federal Reserve Bank of Minneapolis. It found that 89% of businesses had not yet cut, nor were planning to cut, the hours of their employees to cope with the Affordable Care Act, according to the Minneapolis Fed's Roundup.


Nevertheless, that leaves 11% of businesses unaccounted for. So how do they plan on coping? Some 4% said they have already shifted to more part-time workers, while 7% said they plan to cut hours. 


While the impact might not be as wide as feared, even 10% of businesses trimming hours would result in painful pay reductions for many workers. The study polled more than 200 businesses in the Minneapolis region. 


Fast-food and restaurant chains have been among the most vocal critics of the law, which goes into effect next year. The regulation will require businesses with more than 50 full-time employees -- those working at least 30 hours a week -- to provide health care benefits or else pay a penalty.


A Five Guys franchisee in North Carolina lashed out at the law earlier this month, saying the cost of providing health care will slow his expansion and could raise prices, while Whole Foods Market (WFM) founder John Mackey called the law "fascism."


It's important to keep in mind some caveats with the Minneapolis Fed's survey. 


For one, as the bank itself notes, "many responding organizations employ fewer than 50 people and are exempt from some provisions of the act."


The Minneapolis Fed also heard from some respondents that it's too early to say how the complicated regulations will affect them. 


"We're just beginning to figure out the impact of the Affordable Health Care Act," said a Minnesota respondent, according to the bank's site. "Once we understand that, we'll adjust accordingly."


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195Comments
Mar 22, 2013 11:25AM
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Just some more propaganda!!!  You just have not heard about companies cutting back because they were hoping that Washington would wake up and do the right thing.  That didn't happen so companies are cutting and doing it fast and severely.  We just got two weeks notice at my work that hours are being cut from 35 to 25 hours per week.  40 hours per month, over one week of work taken away.  Everyone's solution is we will just hire more people.  Does anyone see that more people are not getting more opportunities and insurance.  This is the worst law ever, but no one wants to admit that they were wrong to ever support the train wreck called Obamacare!!!!

Mar 22, 2013 11:11AM
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I work in the health care field.  20 plus people who were hired as extra help had their hours cut back and are now in the process of being laid off.  They were told it is due to Obamacare. 
Mar 22, 2013 11:07AM
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We'll all be paying double very soon. and thats a fact. Where I work it's increased last year and will again this year. Co-pays are increasing also. The only people I've heard that will benifit, are those who have no insurance. Lose/lose!
Mar 22, 2013 11:28AM
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It's going to take years to correct everything Obama's is screwing up
Mar 22, 2013 11:24AM
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If the Obama Administration had the integrity to realize that they have made a very bad mistake they would repeal this very poorly structured and already very expensive program.  All research more than suggest this stupid, bureaucratic program, is going to get even more expensive, increase taxes and continue to increase its reams of paper work.  Consider all of Obama's failures like Solundra etc., and his wasteful stimulis programs and you will realize this destructive socialist doesn't know what he is doing. Over four years of his administration and the unemployment rate is realistically way over 7.8 % if it was correctly calculated.  We have four more years of smoke and mirrors and destruction of the America way of life.  Obama needs to be tarred and feathered and drummed out of the corp.
Mar 22, 2013 11:07AM
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I personally know poeple cut back already and know others splitting companies into 2 seperate companies to get by the mandate.  will it effect business  yes  but not as much as it will the average worker.  to mandate is nothing more than to control or to force  so the law is wrong on its face
Mar 22, 2013 11:40AM
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Wow, talk about lying with statistics.  They are clearly leaving out the facts in this story, like the vast majority of businesses in the U.S. are <50 people already and won't be affected, but a majority of people who are working, work for large companies who are affected and will have to cut back on employees and/or hours.  Even if it is only 10% of businesses who have to cut back it will still affect a huge percentage of the workforce.  I guess they think we as Americans are too stupid to realize that.
Mar 22, 2013 11:34AM
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We don't have to lie about obongo. He is probably the biggest POS that has ever been in politics. He is fasttracking this country into disaster.
Mar 22, 2013 11:29AM
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Full time jobs will be hard to keep and pat time jobs 29.5 hours a week or less will be plentiful. Libtard idiots looking for hand outs never think of the consequences and just pass legislation without reading the fine print. Have fun waiting at the state exchanges for rationed healthcare insurance, it will be chaos worse than any bad day at the DMV!

Mar 22, 2013 11:55AM
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NEVADA LUKE,

OBAMACARE HAS ALREADY TAKEN $200 MORE PER MONTH FROM ME FOR INSURANCE. THAT WAS MY SAVINGS MONEY. NOW NO SAVINGS, NO CUSHION. I WONDER HOW OBAMA AND THE FAMILY WILL TOLERATE ME AS A HOUSE GUEST WHEN I CAN NO LONGER BE SELF SUFFICIENT. OBAMACARE, WHAT A LOAD OF WELFARE CRAP. IT DOES NOT PAY TO BE A CAPITALIST IN A MARXIST RUN SOCIETY

Mar 22, 2013 11:44AM
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That's what this country gets for passing this pig in a poke law.
Mar 22, 2013 11:53AM
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Obamacare will make more people dependent upon the government and less full time self sufficient workers.  Wake up and understand that great counties are built with the hands and on the backs of people who want to earn their own destinies. 
Mar 22, 2013 12:03PM
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NBC News last night ran a story on how poorly the VA runs, with waits up to 2 years for services.  Who runs the VA?  Oh yeah, the same people that will be running the national health care program, the Feds.  Forget the costs for an instance and look at the potential service.  Now add the costs into the equation.  Scarey.
Mar 22, 2013 11:48AM
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There is nothing free in this world.  
Mar 22, 2013 11:45AM
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I recently retired and the owner told me that if he has to pay health care he will just sell out but in the mean time he has already made everyone part time including the manager which might seem strange but it is a small town so any job is a plus
Mar 22, 2013 11:56AM
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Eddie, you're on a bad Roll. We had a robust economy with Reagan. Created more jobs than any president. You're just a drone spewing out remarks that you hear from your imperial government and have no idea what is going on in the real world. My guess is that you are one of the whiners that believe they are worth much more than they are. This is Obammy's way of leading this country to a "single payer" medical system that is used in ALL socialistic countries and has failed miserably. All DEMS want a one party system and we are heading that direction. Plain and simple." Those who desire to give up freedoms to gain security will NOT have, nor do they DESERVE either one." Benjamin Franklin. Get educated.
Mar 22, 2013 12:19PM
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Dem wanted a shorter work week.  now we got it
Mar 22, 2013 11:53AM
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Insurance companies are the biggest losers in this.  There will not a be a need for insurance underwriters since no one can be denied. There will be no use for insurance agents with the exchanges.  I might be out of a job with my company since we will not be on the exchange in my state.  Who's going to know we exist?  Insurance companies are paying all sorts of fees to support the exchanges that will be the reason we would have to close our doors.  It isn't going to be any cheaper on the exchanges.  In fact, it will be more since we have to pass those fees on to the customers.  A government subsidy only does so much.  I agree with parts of Obamacare, but mandating that everyone carries insurance is asinine.  We're required to have car insurance, but there's no tax penalty if you don't. (I'm not suggesting jail time either).  So much for creating jobs Obama.  You just took more away and I don't even think you realize it.  You will.
Mar 22, 2013 11:56AM
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Hey we found an obsucre study to contridict what ever other major study has said. Lets publish that one.

 

Mar 22, 2013 12:35PM
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We should all learn a second language; Spanish,Chinese, Pakistani, etc. so we will be able to communicate with our doctors and nurses of the near future. If I have to explain this to you just ask a Canadian.

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