June 12, 2013
While some major employers are cautiously viewing the implications for their businesses of Obamacare, others are getting ahead of the curve.
Among the latest: Cumberland Gulf Group, which operates 600 convenience stores and gas stations and employs some 7,200 part- and full-time workers.
Cumberland announced this week that it is already taking steps to bring its health coverage plan into compliance with the major anticipated components of the Patient Protection and Affordable Care Act.
In a release, Cumberland said it had charged an internal team with providing expanded health care coverage to an additional 1,500 employees by Oct. 1 — months ahead of the mandated date for compliance.
In a release, Cumberland said it had charged an internal team with providing expanded health care coverage to an additional 1,500 employees by Oct. 1 — months ahead of the mandated date for compliance.
Cumberland, like other major employers, will be required to cover full-time employees, defined as those who work 30 or more hours a week.
The company has 3,000 workers at 40-plus weekly hours, and 4,200 considered part-time. Cumberland said it would reclassify 1,500 of those 4,200 as full-time employees and extend medical coverage to them by Oct. 1.
The company has 3,000 workers at 40-plus weekly hours, and 4,200 considered part-time. Cumberland said it would reclassify 1,500 of those 4,200 as full-time employees and extend medical coverage to them by Oct. 1.
“Under the Health Care Reform 'Pay or Play' scenario being evaluated by businesses across the country, some retailers will choose either the path of paying the IRS imposed penalty of $2,000 for every full-time employee rather than pay for medical insurance, or begin scheduling many of their employees to under 30 hours per week to avoid full time classification,” the company said.
“Cumberland Gulf is doing neither; instead it has chosen a path that best suits its culture of investing in its people.”
“Cumberland Gulf is doing neither; instead it has chosen a path that best suits its culture of investing in its people.”
The company said its early action to extend benefits is part of its strategy to be the “employer of choice” in its industry.
“We are a people-focused company and we fundamentally believe that it is our serious commitment to our people that will continue to set us apart in the marketplace,” said Ari Haseotes, president and CEO of Cumberland Farms. “Investing in our employees is not just a smart thing to do – it is the right thing to do.”
http://www.benefitspro.com/2013/06/12/gas-station-chain-expands-coverage-ahead-of-ppaca?eNL=51b8adc6160ba061560000f1&utm_source=BenefitsProDaily&utm_medium=eNL&utm_campaign=BenefitsPro_eNLs&_LID=144817897
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