NACS Urges Obama to Reconsider Part-Time Employee Benefits

NACS opposes a health-care benefits provision offered by Obama for part-time, temporary and seasonal workers.

March 16, 2010

WASHINGTON - NACS has joined a coalition of 15 trade associations in sending a letter to the White House that addresses health-care coverage concerns for part-time, temporary and seasonal workers.

NACS opposes this provision in President Obama??s latest proposal for the following reasons:

  • Penalizing businesses that do not offer health benefits to part-time employees ?" even on a pro rata basis ?" will force many companies to face difficult choices between hiring new workers, decreasing the benefits available to full-time employees or increasing prices.
  • If employers in high-turnover industries are required to offer coverage to part-time employees working fewer than 30 hours per week, company health care costs will increase by as much as 50 percent.
  • Part-time employees commonly have alternative access to insurance through another employer, a spouse or partner, students on their university or parents?? health plans, or Medicare. For privacy reasons, employers will presumably have no way of knowing whether a part-time employee has secured coverage through another avenue, which could lead to a significant increase in expensive and unnecessary double coverage as well as unfair penalties upon employers.

NACS applauded Obama??s most recent proposal that provides a penalty-free 90-day waiting period before employees must be automatically enrolled into an employer??s health benefit plan. However, NACS will continue to oppose any type of health-care mandate placed on an employer.

Read the letter (PDF) in its entirety. For more on the health-care debate, click here.

Advertisement
Advertisement
Advertisement