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Local governments change worker schedules due to rising healthcare costs

Although the employer mandate provision of the Affordable Care Act (ACA) does not come into effect for another 16 months, many cities and state with tight budgets are facing the decision of cutting employee hours or risk going over their tight budgets due to higher employee insurance benefits. 

According to The Washington Post, many local governments across the U.S. are seeing their annual healthcare costs rise as their budgets tighten. To combat this issue, some cities and states are reducing their full-time staff and increasing their part-time workforce by cutting employee hours. The Washington Post reported while employer healthcare premiums may not be rising as they once were, budgets are becoming more restricted.

Money News reported many local governments see the measure as their only option, despite the one-year delay of the employer mandate provision. However, some officials don’t see ACA as the main reason for the increase in part-time government workers; if municipal budgets weren’t so restricted, the governments may be able to afford the rise in care.

Yet this may be a temporary measure for many local governments. According to The Washington Post, Jason Furman, chairman of the White House Council of Economic Advisers, said the number of full-time positions available will increase when ACA comes into effect.

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Erin Woulfe
Erin Woulfe
Erin Woulfe likes to write about things that matter. Keeping her finger on the pulse of what’s happening in the public sector world, she blogs about the latest legislative news and employee benefit trends that affect our school, city and county clients. She’s been with NIS since 2002. “I love connecting to our clients and providing them with the tools they need in order to administrate their plan,” says Erin. “Whether that be materials to educate their employees on certain benefits, how to effectively communicate change within an organization or just providing tips and how-to’s to help them make their job easier.”

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