Farm labor contractors across California, the nation’s biggest agricultural engine, are increasingly nervous about a provision of the Affordable Care Act that will require hundreds of thousands of field workers to be covered by health insurance.
While the requirement was recently delayed until 2015, the contractors, who provide farmers with armies of field workers, say they are already preparing for the potential cost the law will add to their business, which typically operates on a slender profit margin.
“I’ve been to at least a dozen seminars on the Affordable Care Act since February,” said Chuck Herrin, owner of Sunrise Farm Labor, a contractor based here. “If you don’t take the right approach, you’re wiped out.”
The effects of the law could be profound. Insurance brokers and health providers familiar with California’s $43.5 billion agricultural industry estimate that meeting the law’s minimum health plan requirement will cost about $1 per hour per employee worked in the field.
“Everybody is afraid of the cost,” said J. Edward McClements, Jr., a senior vice president at Barkley Insurance and Risk Management, based in Oxnard, about 60 miles west of Los Angeles. “It’s difficult when you’ve got 1,000 workers who’ve never had health insurance before, to get an idea of what their costs will be.”
The concern is felt from vineyards in Napa County to the...
Jon L.Gelman of Wayne NJ is the author NJ Workers’ Compensation Law (West-Thompson) and co-author of the national treatise, Modern Workers’ Compensation Law (West-Thompson). For over 4 decades the Law Offices of Jon L Gelman 1.973.696.7900 email@example.com have been representing injured workers and their families who have suffered occupational accidents and illnesses.
Read more about "The Affordable Health Care Act and workers' compensation.
23 hours ago
Until the ACA was passed in 2010, health insurance was pretty much a business-to-business transaction. Insurers sold plans to employers acting as proxies for their employees. Once the ACA became law, insurers started ...
Aug 19, 2013
"The Affordable Care Act has set new standards — called essential health benefits — outlining what health insurance companies must now cover. But there's a catch: Insurance firms can still pick and choose to some degree ...
Aug 09, 2013
“In many ways, the ACA has been a distraction, because people think that all of the health care debate boils down to 'do you support the ACA or do you oppose it?' ” said Darius Lakdawalla, one of the authors and a visiting ...