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AMOK Obamacare Takes Toll on West Michigan Jobs
The loss, conservatively, of at least a thousand jobs from Obamacare in a four county west Michigan area (Allegan, Muskegon, Ottawa, and Kent Counties-- AMOK) as found in a survey and study conducted by Grand Valley State University released on January 15, is likely a bellwether for how the wrecking ball known as the 'Affordable Care Act' is tolling for jobs across America. WOOD TV broke this story right before the weekend.
GRAND RAPIDS, Mich. (WOOD) - A new report out Thursday by Grand Valley State University found that there are at least 1,000 fewer jobs in West Michigan as a result of the Affordable Care Act, more commonly referred to as Obamacare.
The report was conducted by GVSU economics professors Leslie Muller and Paul Isely in collaboration with Priority Heath. A survey was sent to local businesses with more than 50 employers in Allegan, Kent, Muskegon and Ottawa counties.
Online: Read the full report (pdf)
"Firms are actually holding off on hiring or their reducing their hiring that they were thinking they were going to be doing because of the ACA," said Muller.
The 1,000 jobs lost does not include the number of workers in West Michigan that have lost hours to ensure that they are kept as part-time employees. Nearly one-third of companies said they have cut employees' hours.
"We're talking about a thousand jobs in West Michigan that would have been here absent the ACA," Muller said.
The study found lower-skilled jobs tend to be suffering the most.
"When you look at those firms that are decreasing hours and putting off hiring, it was mainly the lower-skilled firms, the smaller and lower-skilled firms," Muller said.
Firms are also making changes to the health insurance programs they offer employees by increasing the share cost with employees, using a high-deductible plan and changing prescription drug coverage.
"The predominant way that firms in Western Michigan are containing health costs, health care costs, is by offering high deductible plans, changing their prescription coverage. And then in general, we just asked the question, 'Are you planning or have you passed on a greater percentage of health care costs on to your employees which is going to turn into higher premiums perhaps higher co-payments?' And we found that a large percentage of employers had done that because of the ACA or were considering doing that," Muller said.
In fact, the study found 37% of companies shifted costs by using a higher-deductible plan, 30% changed their prescription drug coverage and 49% increased how much their employees are paying for healthcare.
Muller said many companies push costs onto employees because the ACA requires them to offer benefits like maternity leave, which they may not have offered in the past.
"Those plans tend to cost more money than maybe what they used to be offering," Muller said.
Some employers have also increased the use of temporary workers.
Muller and Isely also found that the ACA is also affecting the economic growth of West Michigan. According to the report growth will be 0.1 to 0.2 percentages points lower in Allegan, Kent, Muskegon and Ottawa counties over the next year because of the ACA.
"I think everyone has to be concerned about the high heath care costs," Muller said.
Muller said the report is reflective of the ACA's affects on businesses nationwide.
"What is happening in Western Michigan is quite similar percentage-wise to what is happening in the rest of the country," Muller said.
http://www.woodtv.com/news/local/kent-county/study-finds-affordable...
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