Obamacare costs may force UNC to cut hours for 6,500 employees

Campus Reform Reporter

Total Shares
This is the CRO SBAR

  • Marty Kotis, a member of the UNC Board of Governors, says that compliance could cost the UNC system $47 million next year.
  • UNC could lessen the financial impact by cutting hours, moving to cheaper health plan.
  • Obamacare could cost the University of North Carolina (UNC) system as much as $47 million per year starting in 2015 — and the universities may cut hours and jobs to comply, Campus Reform has learned.

    The Affordable Care Act requires the system to start providing insurance for 8,586 non-permanent employees who work more than 30 hours per week — but UNC is considering just cutting their hours to avoid having to pay for the insurance, Marty Kotis, a member of UNC Board of Governors’ Budget and Finance Committee, writes on his blog, the Greensboro Observer.

    “Campuses are going to have to make changes to their business model. That may mean less temporary employees than they would otherwise have." - Brian Usischon, UNC Associate Vice President for Human Resources   

    Kotis told Campus Reform that UNC Chief Operating Officer, Charlie Perusse, said universities will “likely” cut the hours of 75 percent of eligible employees in order to lower the cost of complying with the mandate to between $11-$22 million.

    Perusse confirmed the accuracy of the numbers in an interview with Campus Reform Monday morning. 

    UNC’s Associate Vice President for Human Resources Brian Usischon said he also wasn’t sure how the universities would handle the costs, but offered job cuts as one example.

    “Campuses are going to have to make changes to their business model,” Usischon said in an interview with Campus Reform. “That may mean less temporary employees than they would otherwise have."

    The $47 million number comes from the current cost of health insurance at UNC — for which the 2014 cost is $5,435 per employee, according to Kotis — but those rates may be even higher in 2015.

    “We don’t know what it will be next year,” Kotis said in an interview Campus Reform. “They told me [it would cost] $5,200 [this year]; I asked for a chart of the history and it showed $5,450 or something. And by next year it could be $6,000 for all we know. So the number could be higher."

    Health care costs have already risen 34 percent in the past seven years, according to Kotis. UNC is attempting to get approval to offer employees such as graduate and teaching assistants, temporary faculty, and student employees a cheaper plan.

    The employees who qualify include graduate and teaching assistants, temporary faculty and student employees.

    Follow the authors of this article on Twitter @kctimpf and @SterlingCBeard

    LATEST TWEETS

    rosannemiller
    @freedomgirl2011 - 2 hours ago

    Massive protest fails to stop tuition hikes at University of California http://t.co/EpqnhPkVJB@campusreform #OWSLA

    Mistress Alexa
    @MistressAlexa - 3 hours ago

    After recently allowing transgender students to enroll, All-women’s college offers sex toy training http://t.co/QB1fSRfqNi via @campusreform

    Ted Torok
    @SlowDownandLove - 3 hours ago

    @campusreform All young Americans must watch this Truth video "Why TRUTH-LOVE-HAPPINESS are conscious choices." http://t.co/frhYWy8wVG

    Irene Starkehaus
    @starkehaus - 3 hours ago

    Dartmouth student: America must ‘fix free speech’ with censorship http://t.co/MSRIiyev6R via @campusreform

    4thCaller
    @4thCaller - 3 hours ago

    @campusreform @K_Schallhorn the good old "kill whitey" kind of anti-racism...

    Ken Meyer
    @FAQSMAN - 3 hours ago

    @campusreform @K_Schallhorn Someone should tell these students that "brown" are Caucasians. Study some Biology instead of Lib garbage!

    Max Sutherburg
    @Max_Sutherburg - 4 hours ago

    @campusreform The ultimate hookup: Feigned outrage & pseudo righteous indignation. @K_Schallhorn

    Cassandra du Telle
    @CassDuTelle - 4 hours ago

    POiSON'ed ivy "students" Should! ALL ! BEe S H O T w/Their Handz-HeLd-Up!," ...To SAVE AMERICA's F u t u r e @campusreform @K_Schallhorn

    packergirl
    @p9cker_girl - 4 hours ago

    @campusreform @K_Schallhorn I wonder if Jews are included cuz we have always been persecuted throughout history by every race