The implementation of the Patient Protection and Affordable Care Act may bring more health insurance leads for insurance agents, but it may also cause businesses to limit the amount of hiring they do.
According to a recent report in USA Today, several human resource firms forecast that businesses may change the way they hire in the new year by limiting the number of full-time jobs positions and hiring more part-time workers. Under the PPACA mandate, businesses who employ more than 50 workers are required to provide affordable coverage to employees who work 40 hours a week or more.
Rob Wilson, who heads an Illinois-based human resource and recruitment firm, noted that many companies may find that this makes the most sense from a financial standpoint, as companies aren't obligated to provide coverage for workers who are part-time.
Economists fear that the so-called employer mandate may cause the economy to contract, as many people may become underemployed as a result of the PPACA.
Agents should be aware, however, that these forecasts are theoretical. Business owners may ultimately find that it's in their best interest to continue to offer benefits to their full-time workers, as there's a $2,000 penalty for each worker who isn't afforded health coverage.