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News
Healthcare law may cost park district, board told : News : Oswego Ledger-Sentinel : Hometown Newspaper for Oswego and Montgomery, IllinoisHealthcare law may cost park district, board told
| Requirement for staff working over 30 hours a week a concern
| by Lyle R. Rolfe
| 12/6/2012
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The U.S. Affordable Health Care Act, known as "Obamacare" to many people, could prove expensive for the Oswegoland Park District, board members learned Tuesday.
Rich Zielke, executive director, told the board's finance committee meeting that the district's policy is to provide health insurance only for its 43 full-time employees.
But when health care act goes into effect on Jan, 1, 2014, the district will have to provide insurance for all employees who work 30 or more hours a week. The government will consider these people as full-time employees, making them eligible for health care insurance at the district's expense, Zielke said
Zielke said they have part-time employees who work between one and 34 hours a week. And 12 of them work more than 30 hours a week or 1,560 hours a year, so the district must offer to pay for their health insurance, he said.
He estimated it would cost the district an additional $120,000 annually to provide health care insurance for the 12 part-time employees working more than 30 hours.
Zielke said he has been working with staff members to determine how to handle the situation. They are looking at every position to determine if they can modify work schedules to have the 12 employees work less than 30 hours a week.
"Or it may not be in the district's best interest because of the programs involved, to modify those schedules," he added.
Zielke gave as an example a preschool teacher who may work more than 1,560 hours a year.
"Can that person's schedule be modified without having a negative affect on the program? We're doing our best to find a balance for this," he said.
Zielke said his goal is to maximize the staff's talents while minimizing the cost as much as possible and said he was open to any suggestions from board members.
Board member Roy White asked what departments these people work in. Zielke said they include customer service, Fox Bend Golf Course, the recreation department, operations department and finance.
If the district does not offer the insurance to these employees the district would be fined by the government, he said. Many businesses who have large numbers of part-time people are going to pay the fine or penalty, according to Zielke.
Zielke said they have between Nov. 1 of this year through Oct. 30 of 2013 to make a decision.
He said he has been discussing with supervisors whether any of the part-time people could do their job in less hours or modify their work schedules without affecting the programs they oversee or the people they work with.
"We need to find a way to minimize our costs without affecting the efficiency of the park district's employees," Bob Mattingly, board president said.
Zielke said they may cut some employees from 34 hours down to 29 and hire another part-time person for five hours. The salary cost will be the same but the district will avoid the insurance premium cost, he said.
There also is a possibility some of the part-time people, which means those who work 34 hours or less each week, may not want the health care insurance because they are included on a spouse's policy.
The district has been fortunate in that its health insurance costs have decreased over the past few years because the number of employees has decreased and because the rates the district pays in a pool have gone down.
Zielke said they could ask affected employees to consider paying part of the insurance costs.
If an employee is working in the recreation area, they may look at increasing program fees to help offset insurance costs, he said.
Zielke said the employees cannot pay more than 9.5 percent of their gross wages for health insurance according to the government guidelines or the district can be fined.
He said he will continue with the staff members and keep the board informed.
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