Trader Joe's To Drop Health Coverage For Part-Time Workers Under Obamacare: Memo

[applegrove]

Trader Joe's To Drop Health Coverage For Part-Time Workers Under Obamacare: Memo

by Dave Jamieson at the Huffington Post

http://www.huffingtonpost.com/2013/09/11/trader-joes-obamacare_n_3902341.html?utm_hp_ref=politics&ir=Politics&utm_hp_ref=politics

"SNIP.................................


After extending health care coverage to many of its part-time employees for years, Trader Joe's has told workers who log fewer than 30 hours a week that they will need to find insurance on the Obamacare exchanges next year, according to a confidential memo from the grocer's chief executive.

In the memo to staff dated Aug. 30, Trader Joe's CEO Dan Bane said the company will cut part-timers a check for $500 in January and help guide them toward finding a new plan under the Affordable Care Act. The company will continue to offer health coverage to workers who carry 30 hours or more on average.

The law mandates that companies with 50 employees or more offer coverage to such full-time employees, though the Obama administration has chosen to delay that rule for a year.

Trader Joe's has won kudos for offering its health care, dental and vision plans to part-time workers at a reasonable price -- a rarity in an industry known for low pay and scant benefits. But with low-wage workers eligible for tax subsidies to buy health insurance next year, the company has apparently calculated that offering medical coverage to part-timers who work 18 hours or more is no longer worth the cost.


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[msongs]

1. corporations are gonn a love the ACA, a huge boost for profits nt

[Skittles]

2. a real boost for insurance companies

we all know they charge much more if you're not on a group plan

[AZ Mike]

3. C'mon. This is ridiculous.

Insurance companies can charge all they want, but they are capped at 80% so they are under the burden to prove they spent 80% during the year on healthcare. If they cannot fulfill that burden, they owe everyone refunds.

So, if everyone's monthly policies are $1,000,000.00, it doesn't matter.

Also, the exchanges ARE group plans - very nearly a public option.

The lack of understanding is out of control. Mechanically, this legislation is pretty airtight.

[Safetykitten]

7. Got insurance now?

[Skittles]

13. I'll show you ridiculous

http://www.democraticunderground.com/?com=view_post&forum=1002&pid=3649654

[avaistheone1]

6. This really hurts the working poor which I thought ACA was supposed to help.

We should have went with a universal single-payer system. It would have been up and running by now saving people's lives.

[Ian David]

4. They're helping them find BETTER coverage in the exchange. It's a win-win. n/t

[avaistheone1]

9. Really?

Trader Joe's is only contributing $500 for each of these part-timers.

How does this turn into a good deal for the workers?

[Ian David]

15. Really... Okay, maybe....

...

Specialty-food retailer Trader Joe's has been a leader in good employment practices, providing generous health benefits to even its part-time workers. But the company has decided, according to an executive memo obtained by Huffington Post, to drop coverage for part-time workers, and will help them obtain subsidized insurance on the new health exchanges.

In the memo to staff dated Aug. 30, Trader Joe's CEO Dan Bane said the company will cut part-timers a check for $500 in January and help guide them toward finding a new plan under the Affordable Care Act. The company will continue to offer health coverage to workers who carry 30 hours or more on average. [...]

"Depending on income you may earn outside of Trader Joe's" -- i.e., another job -- "we believe that with the $500 from Trader Joe's and the tax credits available under the ACA, many of you should be able to obtain health care coverage at very little if any net cost to you," Bane wrote in the memo.
...

Trader Joe's is making a business, rather than a political, decision here. They're not just cutting their part-time workers loose, but providing assistance for them in actually getting new coverage. However, the question remains whether these employees will be able to get equivalent insurance at the same affordable prices.
...

http://www.dailykos.com/story/2013/09/11/1238160/-Trader-Joe-s-will-drop-health-insurance-for-part-time-employees-help-them-get-on-exchanges?detail=facebook

[bluestate10]

11. Some people are incapable of seeing that.

The company is giving each employee $500. I would rather see TJ go to the exchanges and bargain on behalf of the employees.

[Safetykitten]

5. We drop people off, so we can make more money, so we can pay...uh...

better wages...oh really who are we fucking kidding.

[bluestate10]

8. Could you possibly consider the possibility that Trader Joe's may be trying to boost

ACA exchanges? I would love to see a major employer send all of it's workers to the exchanges and use it's leverage to improve the participant expense, quaity and completeness of offerings.

Trader Joe's is giving each employee $500. I would prefer that Trader Joe's went to the exchange and chose policies that gave all of it's employees the highest quality, cost efficient health care coverage.

[applegrove]

14. I saw the headline and read the article. I don't understand the ACA well enough

to say if it was a good or bad thing. But I thought I'd put it out there for discussion. And I have learnt a lot thanks to you all. (I'm in Canada and only know single payer).

[Paulie]

10. Being under the exchange has another positive

Portability without the cobra expenses. Low income will get a subsidy for coverage so will be able to maintain coverage and their doctor relationships when switching jobs.

[Safetykitten]

12. What?

[Motown_Johnny]

16. If they have no full time job....

.... isn't it reasonable to assume they will fall into the income group that is below the 133% of poverty level and therefore qualify for Medicaid?


Not that I am trying to defend this action, but isn't it possible that a $500.00 check and qualifying for Medicaid might not be a bad thing.

Of course if they want dental and vision plans they will need to pay for that but even so.... I need to see the numbers before I jump down their throats for this.