LOS ANGELES (AP) – Legislators are taking aim at large employers who pay their workers so little that they qualify for government health insurance at taxpayer expense.
The Los Angeles Times reports legislators are calling for fines of up to $6,000 per full-time employee who ends up on Medi-Cal, the state’s health insurance for the poor and other vulnerable people.
Proponents of a new bill say a loophole in the Affordable Care Act lets large retailers and restaurants dump hourly workers onto the government dole.
Opponents say the bill is a major job-killer, and major retailers already face challenges in implementing health care reform.
It’s estimated 130,000 workers from large firms will go on Medi-Cal in the next few years.