The Affordable Care Act is anything but “affordable” for media giant AOL, which stands to face $7.1 million in costs as a result of the new healthcare law.
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Tim Armstrong, chief executive officer of AOL, discussed the additional costs the media company is incurring as a result of the Affordable Care Act. Appearing on CNBC on Thursday morning, the company head said President Barack Obama’s signature healthcare law will result in a $7.1 million added expense.
“We have to look at our benefits programs very seriously,” Armstrong said. “In the CEO chair, let me give you an example of the decisions we have to make as a company: Obamacare is an additional $7.1 million expense for us as a company. So we have to decide whether or not to pass that expense to employees or whether to cut other benefits.”
AOL’s CEO said the company has not yet decided what course of action it will take, but Armstrong told CNBC he will be meeting with employees to seek their input. In addition to aol.com, AOL also owns The Huffington Post, AIM and Moviefone.
In the months leading up to Obamacare’s implementation, many companies have seen health insurance costs increase, leaving officials with the decision of how to deal with such an expense. Retail giant Target announced last month it would be cutting health plans for part-time employees working less than 32 hours a week, and Delta reported in August it would see $100 million in added costs as a result of the Affordable Care Act.
Watch Armstrong’s appearance on CNBC below.
