During a town hall meeting in Iowa, Democratic presidential frontrunner Hillary Clinton admitted that Obamacare has pushed employers to shift to using more part-time workers.
Clinton was responding to a question about part-time workers and the Family and Medical Leave Act (FMLA).
“Well, that’s why they’re going to part-time. That and the Affordable Care Act,” Clinton said, adding that “You know, we’ve got to change that because we have built in some unfortunate incentives that discourage full-time employment.”
Clinton, who failed miserably when she tried to sell her husband’s healthcare reform package in 1993, has been a staunch supporter of Obamacare—even promising to add on to it—and admitted that there is a serious flaw in the law that has serious economic ramifications for the country:
There is a disincentive in our system that we need to deal with, and I’m really worried about it because there is a trend to try and move more and more people into part-time work. And sometimes you want to work part-time, it fits into your family, it fits into your other life obligations, but sometimes you want to work full-time but you can’t get a full-time job. So I want to look at all the employment rules.
That “disincentive” is the employer mandate—a key component of Obamacare—which requires companies with 100 or more employees to provide healthcare for full-time workers, thereby increasing costs without a corresponding increase in revenue. This gives them a huge incentive to use more part-time workers. The shift to part-time workers is likely to increase next year as the mandate will cover employers with 50 or more employees, which will hit small businesses particularly hard as they struggle to survive in a weak economy.
Obamacare has been a disaster, as premiums have risen faster than the Obama administration predicted, deductibles have increased significantly, and 12 of the 23 co-ops that were set up to sell health insurance under the law to provide competitive pricing have folded, leaving millions scrambling to find new insurance.
Clinton has said that if she is elected president, she won’t repeal Obamacare. But if she isn’t careful, her support of this failing program could be her undoing in 2016.