A little-known provision of the Affordable Care Act will force businesses to automatically enroll all new full-time employees into the company health plan. Because of the high turnover rate in the retail and restaurant industries, most of those employees will quickly exit the plan, gaining no real benefits but saddling job creators with mountains of expensive paperwork. Industry experts warn this could lead to fewer jobs and higher costs for consumers.
The Auto-Enroll provision also forces employees to purchase health insurance they may not want or need. This is especially burdensome for students who may already be covered under their parents' insurance and for employees on a fixed income, who will now have premiums they can't afford deducted from their paychecks.
This week, Congressmen Richard Hudson (NC-08) and Robert Pittenger (NC-09) introduced legislation to repeal the Auto-Enroll provision of Obamacare, freeing businesses to create new jobs and allowing hardworking Americans the choice to keep more of their own paychecks.
"The damage that President Obama's health care overhaul does to our economy exemplifies the worst in government overreach, and provisions such as automatic enrollment further hinder our job creators from getting people back to work," said Congressman Hudson. "Auto-Enroll penalizes workers and employers, and this repeal measure provides relief without impacting access to care."
"Many small business owners have told me they are scared by the high cost of complying with the Affordable Care Act, "added Congressman Pittenger. "The Auto-Enroll provision is just one more misguided strand of government red tape that strangles job growth while making health insurance even more expensive. Repealing this provision of Obamacare will provide businesses with more confidence to grow."
Many retailers and restaurants already provide health insurance benefits, but need the flexibility to administer those programs efficiently and effectively. The Auto Enroll Repeal Act (H.R. 1254) is supported by more than 40 national retailers, restaurant chains, and trade associations.