Perhaps an example will help. A Crew Member called in the other day and was quite unhappy that she was being dropped from our coverage unless she worked more hours. She is a single mom with one child who makes $18 per hour and works about 25 hours per week. We ran the numbers for her. She currently pays $166.50 per month for her coverage with Trader Joe's. Because of the tax credits under the ACA she can go to an exchange and purchase insurance that is almost identical to our plan for $69.59 per month. Accordingly, by going to the exchange she will save $1,175 each year ... and that is before counting the $500 we will give her in January.
Like Wegmans, Trader Joe's has decided to end health care benefits for part time employees who work fewer than 30 hours a week. The move is in response to the Affordable Care Act, also known as Obamacare.
More than 70 percent of affected workers at Trader Joe's will find cheaper insurance on the health care exchanges, according to a Trader Joe's statement reported by Bloomberg News. The company acknowledges some workers will pay more, depending on their household income. About 77 percent of Trader Joe's workers will see no change to their benefits.
Many companies have already announced plans to end benefits for part-time workers. Some experts predict companies could hold the number of employees below 50, the threshold for when businesses have to offer coverage to full-time workers. They also predict companies will cut the hours of workers to make sure they are not considered full-time employees for which coverage must be offered.
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