In an executive order, Virginia Governor Bob McDonnell has issued a requirement to state-run organizations and agencies to find ways to reduce part-time worker hours to below 30 in order to avoid health insurance regulations put in place by the Affordable Care Act (ACA). The Obama administration’s medical access reform law has previously been met with dismay by Republican leaders, but this is the first time that a state government has actually begun to work around the mandates.
According to the Richmond Times-Dispatch, a local news source, McDonnell made it clear that these efforts were in direct opposition to the health insurance mandate from the ACA, also known as Obamacare by its opponents. The issue has been reportedly discussed for several months, as state officials have struggled to come up with a new definition for part-time services that helps avoid the ACA requirements but also ensure that services are still being rendered, especially in Virginia’s community college system.
“We’re trying to get a really good grasp of who we have, what are the jobs they’re doing, if they’re working more than 30 hours, is it necessary, why?” Secretary of Administration Lisa Hicks-Thomas said during an interview Friday with the source.
James Stegmaier, the chief administrator for Chesterfield County in Virginia, echoed Hicks-Thomas’ sentiment by saying that “we have to put everyone on notice that it is an issue.”
Without these adjustments, officials say, the Virginia state government would be responsible for approximately $110 million in annual insurance costs.
McDonnell, in his statement, hinted at the idea that other American governors are considering similar efforts. If true, these developments could mean that many part-time workers could see their hours cut significantly, which may have an adverse effect on the U.S. economy. Stay with us for more updates on this topic as it develops, as well as information regarding wealth preservation and other tactics necessary to survive financially in this volatile investment climate.