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Republican House Bill Cuts Workers' Health Care Coverage

Republican House Bill Cuts Workers' Health Care Coverage

Some 1 million workers could lose their employer-provided health insurance under a Republican bill (H.R. 30) passed by the House (252-172, with 12 Democrats crossing the aisle) today. On top of stripping health care coverage from those workers, the bill also would add some $53.2 billion to the federal deficit over the next decade, according to the Congressional Budget Office.

The attack on the Affordable Care Act (ACA) comes just two days after Republicans approved legislation that could lead to cuts in Social Security disability and retirement benefits.

Under the ACA, large employers must provide health care coverage to employees who work 30 or more hours a week or they face a penalty. H.R. 30 kicks up the 30-hour threshold to 40 hours a week.

That increase, say health care experts, provides an incentive for employers to drop their 40-hour a week employees down to just 39 hours without a penalty and avoid any responsibility to offer health benefits.

A UC Berkeley Labor Center study estimates there are 6.5 million people at risk of having their hours cut back under the Republican bill. That’s nearly three times the number (2.3 million) that are vulnerable to losing their hours under the current 30-hour threshold.

But even with the current 30-hour a week definition, some employers are cutting back the hours of workers—many of whom worked 30–36 hours a week—to duck providing health coverage and avoid paying the ACA’s penalty. The AFL-CIO and other groups support strengthening employer responsibility rules in the ACA.  Delegates to the AFL-CIO Convention 2013 approved a resolution on the ACA that includes a call for:

Applying a full employer penalty for failing to provide affordable comprehensive coverage to workers who average 20 or more hours per week and adding an employer penalty on a pro rata basis for employees who work fewer than 20 hours per week.

Since the ACA became law, the number of Americans with health insurance has increased by more than 10 million, with the majority of those receiving employer-provided health care. Since the law’s requirement for Americans to have health insurance went into effect a year ago, the percentage of uninsured has dropped from 17.1% to 12.9%.

H.R. 30 and a companion Senate bill that Senate Majority Leader Mitch McConnell (R-Ky.) says he will have on the floor before the end of January will wipe out those gains. We’ll keep you posted on the Senate bill and how you can take action.  

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