The Herald Bulletin

Morning Update

Local Business

February 6, 2014

Local schools cut part-time worker hours to comply with health care law

ANDERSON — As Congress debates what's considered full-time work under the Patient Protection and Affordable Health Care Act, Madison County school officials have already moved to trim the hours of part-time employees.

Full-time school employees are generally eligible for health insurance.

But support staff such as bus drivers, cafeteria workers, instructional aides and custodians — most of whom work less than 40 hours per week — did not receive benefits.

The 2010 law mandates that public and private employees with at least 50 workers provide health insurance to their full-time employees. Under the law, however, a full-time worker is defined as anyone working an average of 30 hours a week. That's a significant change, and one that could be costly because of steep penalties associated with the new health care law.

Dennis L. Costerison, executive director of the Indiana Association of School Business Officials, said many school districts have made the tough decision to cut the hours of part-time employees rather than face the prospect of sharply higher health insurance costs or fines.

Fort Wayne schools employ more than 600 part-time workers and estimated the cost of providing health insurance benefits to them could be upwards of $10 million.

"Unfortunately, schools have had to be innovative to deal with this because they don’t have the extra dollars to meet those needs," Costerison said, adding that the association supports efforts by Rep. Susan Brooks, R-5th District, and Sen. Joe Donnelly, D-Ind., change the definition.

"I know that there has been a huge impact on part-time employers we hire," said Chris Boots, president of South Madison Community Schools Board of Trustees. "We've had to cut their hours."

Ken McCarty, business manager for South Madison, said about 130 employees were affected by the so-called employer mandate.

He conducted a study, which found that providing health insurance to those employees would cost about $1.2 million and no way to pay for it. "The new law did not come with any additional funding," McCarty said.

Text Only
Local Business
  • Senior housing project advances If all the pieces fall into place within the next two weeks, construction on a new senior housing development could begin this fall.

    July 30, 2014

  • Roundabout bids higher than expected Bids for a planned facelift of the gateway into Anderson from Interstate 69 at Scatterfield Road came in considerably higher than the engineer’s estimate for the project.

    July 29, 2014

  • FEA - HB0729 - Senior Falls Aging safely in the comfort of her home Marilyn Moneyhun said being totally reliant on others is difficult. "Losing your independence is a shock to your system," Moneyhun, 84, said. "You are not in control anymore."

    July 29, 2014 1 Photo

  • NWS - HB0728 - business expansion CB Fabricating makes $2 million investment

    A local business founded in 2006 has invested $2 million in new equipment and a building expansion.

    July 29, 2014 1 Photo

  • Charo Boyd: 'My Social Security' simplifies your life So many people buzz through extremely busy and complicated schedules these days. A smartphone in one hand, a computer in front of you, and a digital task list that never seems to end. In addition, to complicate things just a little more, there’s another event you need to add to your list — National Simplify Your Life week.

    July 28, 2014

  • nws - hb0725 - colts - jc - 4.jpg Colts camp's impact: pricey or priceless?

    Football fever is here and the city is flooded with fans eager to catch a glimpse of a favorite player. But officials say they are unclear what kind of economic impact the Indianapolis Colts training camp has on the area.

    July 26, 2014 1 Photo

  • BIZ - HB0727 - Skill gap 2 Seeking a solution today, not tomorrow Tina Warner-Morton says she wants to open her own healthcare business because it is too difficult to work for an employer with unclear employee expectations.

    July 26, 2014 1 Photo

  • BIZ - HB0727 - Cathy Cupboard Biz Profile Business Profile: Cathy's Cupboard focuses on customer satisfaction Cathy McPhearson opened her first storefront in June, but this is not her first venture into business. “I have always wanted to have my own business,” she said. “The problem was finding what people like, but everyone seems to like candles.”

    July 26, 2014 1 Photo

  • IU Health Ball Memorial Hospital named Level III trauma center The Trauma Center at Indiana University Health Ball Memorial Hospital has been verified as a Level III Trauma Center by an ad hoc committee of the Committee on Trauma (COT) of the American College of Surgeons.

    July 26, 2014

  • Clark, Big Joe mug 'Big Joe' Clark: Beat the market or meet your goals? True or not, my experience tells me that goals – especially when written down – undoubtedly serve as catalysts for success. However, danger arises when a goal does not properly focus on the long term result you expect.

    July 25, 2014 1 Photo

Stocks
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide