Lancaster County School District outsourcing workers to avoid penalties under Affordable Care Act

Upcoming mandates in Obamacare has prompted a Lancaster County School District to oursource around 100 of its staff to a private company.  The approved plan is expected to save the district from potential fines, while guaranteeing furloughed teachers a safety net.

Dozens of your childrens’ teachers will no longer be a part of the Eastern Lancaster County School District “family.”  The change has everything to do with the Affordable Care Act.

Dawn Hare helps students up to 30 hours a week as a classroom aide at Eastern Lancaster County School District,

Hare says, “I love my job and the kids, the team I work with, the faculty here, it’s a very positive place to work.”

But the part time employee is no longer a district employee.

Hare says, “When you work through the disrtrict and you are a part of the family, then you are told it no longer is your employer, there’s always that change that makes you nervous.”

Hare’s describing the district’s agreement with private company, “Substitute Teacher Service,” or STS.  The contract calls for outsourcing around 100 employees from food service workers to classroom aides.

Superintendent Bob Hollister says, “There was a frustration because we need those people and weren’t able to use them as often as we needed them.”

Here’s why- Under the Affordable Care Act, the district could face annual fines up to $600,000 for not providing health care to part time workers who exceed working 30 hours a week.

But Hollister says it’s a decision that’s proving to be positive for both the district and the outsourced workers.

Hollister says, “The district is going to be safeguarded and avoid potential loses while employees are literally going to see more dollars in their paychecks and pockets and with an option to buy into services they can’t now.”

Hare says, “For me it’s a benefit to buy into insurance, they seem positive with everything they told us.”

District officials say their furloughed employees will be making a 1-2% bump in pay with STS.  The STS will pay the workers by billing the district based on each worker’s pay rate.

In addition, a handful of school bus aides will be moved to work for Brightbill Transportation beginning next school year.

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