The Obamacare Chronicles: Trader Joe’s to drop coverage for part-time employees

Posted by: Phineas on September 11, 2013 at 3:16 pm

**Posted by Phineas

"Obamacare has arrived"

“Obamacare has arrived”

In my area of Los Angeles, the Trader Joe’s employees and clientele tend to be liberal and well-left of liberal. I wonder what they think of this news?

After extending health care coverage to many of its part-time employees for years, Trader Joe’s has told workers who log fewer than 30 hours a week that they will need to find insurance on the Obamacare exchanges next year, according to a confidential memo from the grocer’s chief executive.

In the memo to staff dated Aug. 30, Trader Joe’s CEO Dan Bane said the company will cut part-timers a check for $500 in January and help guide them toward finding a new plan under the Affordable Care Act. The company will continue to offer health coverage to workers who carry 30 hours or more on average.

The law mandates that companies with 50 employees or more offer coverage to such full-time employees, though the Obama administration has chosen to delay that rule for a year.

Trader Joe’s has won kudos for offering its health care, dental and vision plans to part-time workers at a reasonable price — a rarity in an industry known for low pay and scant benefits. But with low-wage workers eligible for tax subsidies to buy health insurance next year, the company has apparently calculated that offering medical coverage to part-timers who work 18 hours or more is no longer worth the cost.

“Depending on income you may earn outside of Trader Joe’s” — i.e., another job — “we believe that with the $500 from Trader Joe’s and the tax credits available under the ACA, many of you should be able to obtain health care coverage at very little if any net cost to you,” Bane wrote in the memo.

They have an interesting idea of “little if any net cost,” since the projected increase in insurance rates in California are 23% for a 27-year old, and 14% for a 40-year old.

But, don’t blame Trader Joe’s; they’re just doing what makes economic sense for the business, given the perverse incentives built into Obamacare.  The real targets for anger should be the Democrats and their allies, who shoved this anti-constitutional monstrosity down an unwilling nation’s throat, and the people who voted for them.

Such as many, many of the part-time employees at my local TJ’s, who’ve just had a hard lesson in the old adage, “elections have consequences.”

via Bryan Preston

(Crossposted at Public Secrets)

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4 Responses to “The Obamacare Chronicles: Trader Joe’s to drop coverage for part-time employees”


  1. Drew the Infidel says:

    It is a lead pipe cinch these leftist jackwads will never blame Obhammud. They will blame “intransigent Republicans”, “greedy Wall Street”, or some other such group onto whom he has persistently sought to shift the blame.

    “As I have seen, those who plow iniquity and sow trouble reap the same.”–Job 4:8

  2. Carlos says:

    But, don’t blame Trader Joe’s; they’re just doing what makes economic sense for the business, given the perverse incentives built into Obamacare.

    Let’s get real. Obama has honed the “perverse incentives” thing, but that’s what the socialist “leaders,” both jackass and elephant, have been doing with goodies packages for years, probably decades.

    For example: Make either Boehner or McConnell president for a month, and see how many times they want to give away everyone else’ money. Better yet, see how many times they don’t want to give it away!

  3. Jen says:

    Trader Joe’s is probably correct. All of those people who work under 30 hours will be eligible for government subsidies. Those of us who work 60 hours a week in highly skilled jobs will contribute taxes into those subsidies, and the 28 hour a week worker at Trader Joe’s will apply for their “earned income tax credit” in addition to their subsidy.

    Why should Trader Joe fork out money voluntarily for their employees health care when the government mandates that other employees will pay for it instead?

    Just like Nancy Pelosi said, these people can now write poetry and not have to worry about not having health insurance.

  4. ALman says:

    And, to those who pay this “tax” their cost will continue to climb as the number of exemptions are granted and more corporations make a decision similar to Trader Joe’s.