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Coverage may be unaffordable for low-wage workers

3 years 4 months 1 week ago June 13, 2013 Jun 13, 2013 Thursday, June 13 2013 June 13, 2013 9:33 AM in News
Source: Associated Press

WASHINGTON - President Barack Obama's health care law is called the Affordable Care Act, but a glitch could make it unaffordable for many low-wage workers, including employees at big chain restaurants, retail stores and hotels.

Here's the problem:

The law requires medium-sized and large employers to offer what it calls "affordable" coverage or face fines.

But policy experts and corporate consultants say the definition of "affordable" can mean premiums up to 9.5 percent of an employee's income.

And that could be unaffordable for many people making around $20,000 a year or a few thousand more.

Some supporters of the law are disappointed. They say a fix will be needed.

The White House says the worries are overblown. Administration officials say they expect most companies will do the right thing.

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