US companies that employ millions of workers are considering cutting their hours or paying fines rather than enrolling staff in health insurance plans under Barack Obama’s landmark healthcare law.
Employers are concerned that the law increases the cost of insuring low-wage employees on existing plans, partly by broadening their benefits, as well as requiring companies to insure workers not previously covered.
David Dillon, chief executive of the Kroger supermarket chain, told the Financial Times that some companies might opt to pay a government-mandated penalty for not providing insurance because it was cheaper than the cost of coverage.
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