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Affordable Care Act: Dept. of Unintended Consequences

09/23/2013

On Oct. 1, the government of an Indiana county will fire more than 30 employees over age 65. That’s after mistakenly telling them that if they retired and went on Medicare, they would be rehired as part-timers.

The goal was to save money on health benefits. It has worked out fine … for Lake County. For the employees, not so much.

Officials say they have no choice but to terminate the workers, blaming a provision of the Affordable Care Act (ACA) that prohibits hiring back retirees as part-timers. The rule was designed to prevent employers from gaming the ACA by reducing the number of full-time employees.