Abbott Laboratories (ABT), Stryker Corporation (SYK): Will Obamacare Cost You Your Job?

3. Organizations that can easily outsource jobs
There’s one way that companies can avoid the additional health care costs from Obamacare but still keep the same number of workers: outsource the jobs. Temporary-employment agency Robert Half International (NYSE:RHI) said in January that the company was receiving inquiries from employers with around 50 employees. These agencies don’t have to provide health coverage unless the temporary worker is employed on a full-time basis for at least 12 months.

Another avenue for employers — large or small — to minimize added costs from Obamacare is to ship the jobs abroad. The health reform legislation doesn’t require companies to provide health coverage for employees outside the U.S. Boston Scientific Corporation (NYSE:BSX) is one employer that, in addition to cutting jobs because of the new medical device tax, is also moving some operations to China.

Mixed bag
Despite studies from organizations such as the Urban Institute projecting that Obamacare wouldn’t cost jobs, the reality appears to be otherwise. The Federal Reserve’s Beige Book noted recently that “employers in several Districts cited the unknown effects of the Affordable Care Act as reasons for planned layoffs and reluctance to hire more staff.” Even an economist lauded in the past by the White House, Moody’s Mark Zandi, says that the sluggishness in employment stems largely from small businesses not hiring because of the Patient Protection and Affordable Care Act.

However, Obamacare should create at least some jobs. The higher numbers of insured Americans will automatically increase demand for health care services, which will result in the need for more jobs for health care professionals, according to some pundits. Then there’s the new requirement announced last week by the Department of Health and Human Services that could create thousands of jobs. All state-based health exchanges must hire “navigators” to assist individuals seeking insurance. What exactly will these “navigators” do? Explain Obamacare to people.

The article Will Obamacare Cost You Your Job? originally appeared on Fool.com.

Fool contributor Keith Speights has no position in any stocks mentioned. The Motley Fool recommends Robert Half International. The Motley Fool owns shares of Medtronic.

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