As employers across California scramble to figure out what their obligations will be next year under federal health reform, many of them are simultaneously fighting to defeat proposed state legislation that would throw a whole new set of calculations into the mix.
A bill sponsored by Assemblyman Jimmy Gomez, D-Los Angeles, would fine large employers if any of their non-disabled employees who work at least eight hours a week are enrolled in Medi-Cal, the state's health insurance program for the poor.
Advocates of the bill, including the California Labor Federation and the United Food and Commercial Workers union, argue that it merely fills a hole in the federal Affordable Care Act.
The act, widely known as Obamacare, would penalize employers who don't provide affordable health coverage, if even one of their workers receives a federal tax subsidy to buy it independently in one of the state-run insurance exchanges established under the law. But the reform law says nothing about a lower-income group of workers -- those who earn little enough to qualify for Medi-Cal, which is California's version of the federal-state Medicaid program.
A bill sponsored by Assemblyman Jimmy Gomez, D-Los Angeles, would fine large employers if any of their non-disabled employees who work at least eight hours a week are enrolled in Medi-Cal, the state's health insurance program for the poor.
Advocates of the bill, including the California Labor Federation and the United Food and Commercial Workers union, argue that it merely fills a hole in the federal Affordable Care Act.
The act, widely known as Obamacare, would penalize employers who don't provide affordable health coverage, if even one of their workers receives a federal tax subsidy to buy it independently in one of the state-run insurance exchanges established under the law. But the reform law says nothing about a lower-income group of workers -- those who earn little enough to qualify for Medi-Cal, which is California's version of the federal-state Medicaid program.
The proposed state law stipulates that all fines collected go back into the Medi-Cal program. It requires a two-thirds vote in both the Assembly and the Senate, which lengthens the odds of its passage, even if Democrats do command a two-thirds majority -- barely -- in both houses.
Despite the bill's uncertain prospects, businesses that employ a lot of part-time and seasonal labor -- retailers, restaurants, tourism and hospitality businesses, homebuilders and farms, for example -- are furious about it. So are some nonprofits, which would also be liable for the penalties.
A group of Orange County business representatives gathered in Santa Ana on Wednesday to denounce the legislation, arguing that it would hit the economy at a time of continued economic fragility and deny opportunities to first-time employees, college students and people re-entering the labor market.
They also said that the "vagueness" of the language creates a lot of uncertainty that could lead to numerous lawsuits.
"It would put the brakes on job growth, discourage businesses from locating in California and impact our tourism industry, which is huge in Orange County," said Heidi Larkin-Reed, CEO of the Orange Chamber of Commerce.
Steve Smith, spokesman for the California Labor Federation, which co-sponsored the legislation, said that reports of companies cutting workers' hours to avoid or limit their responsibility under the Affordable Care Act "caught our attention," and was one of the factors behind the bill.
If employees work few enough hours or earn low enough wages to be covered by Medi-Cal, their employers are essentially dumping responsibility for them onto the taxpayers, Smith argued. And that violates the spirit of the federal health reform, which calls on everyone to "pay their fair share," he said.
He also noted that the most recent California budget slashes the state's spending on Medi-Cal by 10 percent from its 2011 level. The pending legislation, which would generate "fairly significant" revenues for Medi-Cal, is "a very important way to support the long-term viability of the program," he said.
About 250,000 Californians are enrolled in Medi-Cal and work for companies employing 500 or more people -- the threshold established in the bill -- according to the Labor Center at UC Berkeley. That figure could rise as high as 350,000 next year and 380,000 by 2019 because of the Medicaid expansion envisioned under Obamacare, the center estimates.
Rick Fowler, CEO of the nonprofit Community College Foundation, complained that his organization's "good public work" could be lost if the bill passes.
The foundation tutors schoolchildren under the federal "no child left behind" program, puts college students in paid internships, and runs a financial literacy program. "If we had to pay a health care fine for part timers, we would be put out of business," Fowler said.
via medcitynews.com
Despite the bill's uncertain prospects, businesses that employ a lot of part-time and seasonal labor -- retailers, restaurants, tourism and hospitality businesses, homebuilders and farms, for example -- are furious about it. So are some nonprofits, which would also be liable for the penalties.
A group of Orange County business representatives gathered in Santa Ana on Wednesday to denounce the legislation, arguing that it would hit the economy at a time of continued economic fragility and deny opportunities to first-time employees, college students and people re-entering the labor market.
They also said that the "vagueness" of the language creates a lot of uncertainty that could lead to numerous lawsuits.
"It would put the brakes on job growth, discourage businesses from locating in California and impact our tourism industry, which is huge in Orange County," said Heidi Larkin-Reed, CEO of the Orange Chamber of Commerce.
Steve Smith, spokesman for the California Labor Federation, which co-sponsored the legislation, said that reports of companies cutting workers' hours to avoid or limit their responsibility under the Affordable Care Act "caught our attention," and was one of the factors behind the bill.
If employees work few enough hours or earn low enough wages to be covered by Medi-Cal, their employers are essentially dumping responsibility for them onto the taxpayers, Smith argued. And that violates the spirit of the federal health reform, which calls on everyone to "pay their fair share," he said.
He also noted that the most recent California budget slashes the state's spending on Medi-Cal by 10 percent from its 2011 level. The pending legislation, which would generate "fairly significant" revenues for Medi-Cal, is "a very important way to support the long-term viability of the program," he said.
About 250,000 Californians are enrolled in Medi-Cal and work for companies employing 500 or more people -- the threshold established in the bill -- according to the Labor Center at UC Berkeley. That figure could rise as high as 350,000 next year and 380,000 by 2019 because of the Medicaid expansion envisioned under Obamacare, the center estimates.
Rick Fowler, CEO of the nonprofit Community College Foundation, complained that his organization's "good public work" could be lost if the bill passes.
The foundation tutors schoolchildren under the federal "no child left behind" program, puts college students in paid internships, and runs a financial literacy program. "If we had to pay a health care fine for part timers, we would be put out of business," Fowler said.
via medcitynews.com
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