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ObamaCare- Universal Studios Orlando drops insurance for part-timers

ObamaCare will change the landscape of Health Care in America

Universal Studios Orlando announced they will be dropping health care coverage for many of their part-time workers starting in 2014 due to the federal health care overhaul that is coming under “ObamaCare.” What is likely to be just the first in a long line of companies to do the same, Universal Studios announced the cost will be too great to maintain its insurance coverage.

Why did they make the move? Universal claims it is because of the federal law changes which will eliminate the restrictions for limits for insurance policies. Historically, payouts were capped, and as a result the premiums could be kept low. Under the current health care plan workers pay $18 per week and their hospital benefits are limited to $5,000 each year. With the limits being phased out, companies like Universal Orlando can no longer keep those policies.

The good news is that many employees will not be affected by the decision. The spokesman for the company, Tom Schroder, stressed that Universal cares about their employees and they want to offer affordable medical insurance. Unfortunately, it may no longer be possible under the current laws. Schroder stressed, "This particular issue affects about 3 percent of our 17,000 team members, and we're going to continue to work towards a solution."

Critics of Universal claim the company was too quick to drop the coverage without analyzing additional options for coverage. Other companies, which have made similar changes, claim the costs to comply with the federal laws could increase premiums by more than 66% and result in higher increases in deductibles.

What is ObamaCare?

ObamaCare is the unofficial name for the Affordable Care Act which was passed in 2010 to overhaul the nation’s health insurance. The goal of the Affordable Care Act, with its exhausting 2,000 pages of reforms, is to reduce healthcare costs and provide affordable health insurance to all Americans. With the implementation of ObamaCare the hope is that the 44 million Americans who were not able to get health insurance will now have insurance through an expansion of both Medicaid, Medicare and insurance subsidies.

What are the main provisions of ObamaCare?

Unfortunately, the law seems to have been passed without a clear understanding of what it contained but the basic provisions include:

Although we are still one year from the implementation of many of ObamaCare’s provisions we have begun to see more companies threaten to drop insurance coverage provided by the employer. Other employers have begun limiting the number of employees to maintain less than 50 employees. Another fear is that the cost has been severely under reported and the savings has been exaggerated. Get ready…it could be a bumpy ride.
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