Corporations Approach Affordable Care Act Differently

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Updated: 4/17/2013 7:28 pm
 

It’s the biggest government expansion and overhaul of our healthcare system since Medicaid and Medicare were introduced in 1965. Whether you like it or not, many aspects of the Affordable Care Act will go into effect on January 1, 2014.

Corporate America has taken notice and depending on the company you work for, this could mean fewer hours and less pay.

It’s the biggest government expansion and overhaul of our healthcare system since Medicaid and Medicare were introduced in 1965. Whether you like it or not, many aspects of the Affordable Care Act will go into effect on January 1, 2014.

Corporate America has taken notice and depending on the company you work for, this could mean fewer hours and less pay.

Edwards Cinemas is not only the largest theater complex in eastern Idaho, it’s part of the largest cinema chain in America.

According to Glassdoor, a pay-scale website, Edwards parent company, Regal, employs more than 5,000 people, with the average floor staff worker earning $7.90 an hour, and the average cashier earning $7.80. Fox News is reporting the cinema chain is planning on cutting some workers’ hours to avoid having to provide health benefits.

This all comes down to a provision in the Affordable Care Act that requires employers to provide health benefits to full-time employees that work at least 30 hours a week.

Applebee’s, Papa Johns, and Darden Restaurants, the parent company of Olive Garden and Red Lobster have also threatened to limit employee hours to avoid paying for health benefits.

Still, there are a few chains that are fighting for employee benefits. Costco begins their health benefit plan at just 24 employee hours a week. They also have wages that are generally higher than their competitors. Fortune Magazine reported in 2011, that the average Costco worker made $45,000 a year while the average worker at Sam’s Club made a little more than $17,000 for that same time period.

While Costco and Regal are on opposite ends of the spectrum, they both are growing. Costco reported sales growth of 6 percent in February and Regal saw a 6.5 percent increase in box office sales last year.

Despite the increased cost, it’s estimated that 90 percent of businesses will not cut employee hours to avoid paying for health benefits.

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