WASHINGTON – It's called the Affordable Care Act, but President Obama's health care law may turn out to be unaffordable for many low-wage workers.
That might seem strange since the law requires medium-and large-sized employers to offer "affordable" coverage or face fines.
However because of a wrinkle in the law, companies can meet their obligations by offering policies that would be too expensive for many low-wage workers.
A company can get off the hook, say corporate consultants and policy experts, but its employee could still face a federal requirement to get health insurance. Many are expected to remain uninsured, possibly risking fines.
Some supporters of the law are disappointed. It smacks of today's Catch-22 insurance rules.
"Some people may not gain the benefit of affordable employer coverage," acknowledged Ron Pollack, president of Families USA, a liberal advocacy group leading efforts to get uninsured people signed up for coverage next year. "The new law is a big step in the right direction, but it … will require future improvements," he said.
Andy Stern, former president of the Service Employees International Union, the 2-million-member service-sector labor union, called the provision "an avoidance opportunity" for business. SEIU provided grass-roots support during Obama's long struggle to push the bill through Congress.
The law is complicated, but essentially, companies with 50 or more full-time workers are required to offer coverage that meets certain basic standards and costs no more than 9.5 percent of an employee's income.
