Obamacare Case Study For Employers

Several media outlets, including the New York Times editorial page, have chimed in on Target Corporation's (the large retailer) decision to exclude part-time employees from coverage under Target's health plan. According to the Times, Target's plan has historically covered employees who average 21 to 30 hours per week. We are not privy to Target's internal deliberations on this issue, but the decision process was likely a case study in how ObamaCare works for employers of any size. In particular, such a decision is driven by the cornerstones of ObamaCare: the employer "shared responsibility" payments regime; the generous federal tax subsidies available for those individuals who purchase health insurance through a state exchange; and the "individual mandate."