AOL Cuts Employee Benefits, Blames Obamacare

The company claims ACA is costing them an extra $7M

   

AOL (AOL) is cutting some of its employee benefits in order to pay for new costs induced by Obamacare.

NewLetters AOL Cuts Employee Benefits, Blames Obamacare
Source: mailto:letters@investorplace.com

The tech company claims that President Obama’s new health care reform law is costing the company an additional $7.1 million. AOL CEO Tim Armstrong said that these costs have so forced the company to either pass that expense to employees or to cut other benefits.

Armstrong added that the company had to pay two different employees with distressed babies $1 million each to ensure their health. People immediately criticized Armstrong’s statements which refer to 401(k) changes to childbirth costs.

Guardian editor Heidi N. Moore tweeted that Armstrong makes $12 million a year, yet he’s taking retirement money away from employees in order to pay for sick babies. Armstrong responded by saying that high-risk pregnancies are simply one example of how the company supports families in need.

AOL stock is down 1.2% Friday.

The opinions contained in this column are solely those of the writer.
 
Want to share your own views on money and politics? Drop us a line at letters@investorplace.com and we might reprint your views in our InvestorPolitics blog! Please include your name, city and state of residence. All letters submitted to this address will be considered for publication.


Article printed from InvestorPlace Media, http://investorplace.com/investorpolitics/aol-obamacare-aol-stock/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.