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Obamacare Raises the Cost of Hiring Workers with Families

Created on October 11, 2011

Obamacare Raises the Cost of Hiring Workers with Families

Obamacare Raises the Cost of Hiring Workers with Families

$28,000+

$27,000–$27,999

$26,000–$26,999

$23,000–$25,999

Minimum Cost for Hiring Full-Time Employees Under the Family Health Plan, by State

Map 1 •  WM 3390

heritage.org

The health care mandate in Obamacare will substantially raise the minimum cost of employing full-time workers. Nationally, hiring a full-time employee with a family health plan will cost employers an average of $27,500 per year. This is more than what many unskilled employees produce. Rather than pay the penalty for not providing health benefits, many employers will hire unskilled workers only for part-time positions.

Alabama: $26,000–$26,999

Alaska: $23,000–$25,999

Arizona: $28,000+

Arkansas: $23,000–$25,999

California: $28,000+

Colorado: $23,000–$25,999

Connecticut: $28,000+

Delaware: $27,000–$27,999

District of Columbia: $28,000+

Florida: $28,000+

Georgia: $27,000–$27,999

Hawaii: $26,000–$26,999

Idaho:$23,000–$25,999

Illinois: $28,000+

Indiana: $28,000+

Iowa: $26,000–$26,999

Kansas: $23,000–$25,999

Kentucky: $27,000–$27,999

Louisiana: $23,000–$25,999

Maine: $27,000–$27,999

Maryland: $26,000–$26,999

Massachusetts: $28,000+

Michigan: $23,000–$25,999

Minnesota: $23,000–$25,999

Mississippi: $27,000–$27,999

Missouri: $27,000–$27,999

Montana: $23,000–$25,999

Nebraska: $26,000–$26,999

Nevada: $26,000–$26,999

New Hampshire: $26,000–$26,999

New Jersey: $27,000–$27,999

New Mexico: $27,000–$27,999

New York: $28,000+

North Carolina: $27,000–$27,999

North Dakota: $27,000–$27,999

Ohio: $23,000–$25,999

Oklahoma: $23,000–$25,999

Oregon: $28,000+

Pennsylvania: $23,000–$25,999

Rhode Island: $26,000–$26,999

South Carolina: $26,000–$26,999

South Dakota: $23,000–$25,999

Tennessee: $26,000–$26,999

Texas: $27,000–$27,999

Utah: $23,000–$25,999

Vermont: $28,000+

Virginia: $27,000–$27,999

Washington: $28,000+

West Virginia: $26,000–$26,999

Wisconsin: $27,000–$27,999

Wyoming: $26,000–$26,999

Source: Authors’ calculations based on data from the U.S. Department of Labor, Congressional Budget Office estimates of premiums in 2016 under PPACA, and the 2010 Medical Expenditure Panel Survey—Insurance Component. See Table 1 for cost breakdowns and Footnote 8 for methodology.