Cumberland Gulf reduces hours needed to get company-paid health cover

As a key health care reform law provision effective date nears requiring employers to offer coverage to employees working at least 30 hours a week or pay a penalty, a major Massachusetts company is reducing the number of hours employees will have to work to be eligible for coverage.

Effective Oct. 1, Cumberland Gulf Group employees working as few as 32 hours a week will be eligible for group coverage, down from the current 40-hour-a-week requirement. About 1,500 employees will be affected by the expanded eligibility by the Framingham, Mass.-based company's self-insured health plans.

Employees currently working 30 or 31 hours a week will be given the option of working 32 hours to become eligible for health insurance coverage. For employees who work less than 30 hours a week, the company will assist them in finding coverage through public insurance exchanges.

Under the Patient Protection and Affordable Care Act, employers must extend coverage to employees working at least 30 hours a week effective next year or pay a $2,000 penalty for each full-time employee.

The threat of that penalty has led to numerous predictions that some employers would reduce employee hours to avoid the penalty.

But executives at Cumberland Gulf Group, a $15 billion privately-held company that owns convenience stores and the Gulf Oil brand, rejected that approach.

“We believe that our success comes from our people-first attitude. We want prospective employees to know that by joining with us, they will be treated as partners,” John McMahon, senior vice president and chief human resources officer, said in an email.

Cumberland Gulf Group will pay about 70% of the premium for plans selected by employees.