Realizing the American Dream Through the Affordable Care Act (Obamacare)

Realizing the American Dream Through the Affordable Care Act (Obamacare)
LADA July Blog

This summer as we attend parades, pitch horseshoes, Bar-B-Que or view fireworks, it’s a good time to reflect on the freedoms we enjoy as Americans.

The many generations before us and the hard work many exuded from the sweat of their brow allows us to enjoy our freedoms today. Our founding fathers envisioned freedom from oppression. Today we are more likely to express the idea as the ability to live freely – and the freedom to reach for the American Dream. That dream is a little closer with the Supreme Court upholding the constitutionality of the Affordable Care Act. This historic decision means we are progressing toward the goal of healthcare for all. We’ll all benefit if we have a healthier population.

Last week, when the Supreme Court decision was announced, people all over the country rejoiced but it was an even more exciting time for child and family advocates, knowing that there is now safe passage through a treacherous portion of the path leading to better healthcare for all. More importantly we should keep in mind that a key portion of the Affordable Care Act – the expansion of Medicaid – remains a question mark.

The court ruled that Medicaid expansion is an option, not a mandate, and states will decide whether to participate. Thankfully, Gov. Rick Snyder said he’s weighing options, and he did not immediately join some other GOP governors in rejecting the expansion. (See Michigan League of Human Services Jan Hudson’s blog for more information.)

The harsh reality we face now us is the potential of automatic budget cuts that would hinder the ability of public entities to help Michigan families through tough times.

It is vitally important that we understand the impact of the federal Budget Control Act. In January, unless an alternative is agreed upon, automatic cuts will slice some 8% in federal funding from most programs. These are deep cuts that will hurt programs such as WIC, Head Start, special education, Pell grants and others that give children a chance at growing into productive adults.

Many in Congress would protect the military from the any cuts and extend the expiring Bush tax cuts triggering even deeper cuts in the rest of the public programs. And these are in addition to the dramatic cuts made at the state level recently.

As our economy slowly improves, the programs that help children and families with the basic necessities must be in place. Helping children through tough times will pay off in the long run by preventing negative, lifelong impacts from poverty.

So, after you celebrate the freedoms we enjoy throughout the summer, let’s resolve to jump into the hard work of making sure the next generation has plenty of opportunity to prosper and to achieve that American Dream.

by Al Williams

Unemployment Insurance expanded to include Work Sharing

Governor Snyder has signed a work-sharing bill that gives qualifying employers an important tool for avoiding layoffs. Rather than laying off some employees entirely, the employer reduces hours for a group of employees for a specified length of time and Unemployment Insurance benefits make up part of the employees’ lost wages. This will go into effect Jan. 1, 2013, and has a five-year sunset.

The League has published a fact sheet, Work Sharing: A Win-Win Solution for Workers and Employers that explains the new policy. As noted in the fact sheet, workers benefit from work sharing because they will have less disruption in their household income than if they are laid off. Employers benefit from work sharing because it enables them to keep their skilled workers rather than having to search for, hire and train new workers when business improves. Overall, Michigan benefits when there are fewer layoffs and less risk of some workers becoming long-term unemployed.

While this is a positive development, there still is work to be done. As a League report explained last November, Michigan’s UI program still falls short in many ways, most notably in that it only provides benefits for a maximum of 20 weeks. The new work-sharing program will not be able to help those who are laid off entirely and are unable to find work after 20 weeks of job search. But it may prevent some others from getting into that situation and is definitely a good step for Michigan.

Workers benefit from work sharing because they will have less disruption in their household income than if they were laid off. While UI benefits never replace 100% of lost wages, the wage loss is lower for workers with reduced payroll hours than for those with no payroll hours at all. For some workers, it will mean not getting laid off; for others, it will mean “sharing the sacrifice” through a reduced income so that their co-workers will not be laid off. Workers also benefit because they can continue receiving health insurance and other benefits without disruption (this is a requirement of the law). Participating in work sharing does not count against a worker’s available weeks of Unemployment Insurance, nor is the employee required to participate in job search activities (since it is expected that the employee will in the future be working full time again for the employer).

Employers benefit from work sharing because it enables them to keep their skilled workers rather than having to search for, hire and train new workers when business improves. This reduces unpredictability, administrative costs and training costs. It can also help maintain positive morale in the workplace, as workers are likely to prefer spreading the sacrifice around rather than fearing the loss of their jobs entirely.