AOL became the latest company to blame the Affordable Care Act for cutting back on employee benefits.
The tech firm will now pay its 401(k) company match only to employees who are active on Dec. 31 of that year, as opposed to in their paychecks throughout the year. So those who leave the company before the end of the year will forfeit the match.
AOL CEO Tim Armstrong blamed $7.1 million in additional Affordable Care Act costs the company is facing this year. Had the company not made the change in its 401(k) payments, employees would have seen their health insurance costs increase, he told CNN Thursday.
Armstrong did not provide a lot of specifics about what aspects of the Affordable Care Act were pushing up the company's health care costs, but said it was one factor affecting the 401(k) restructuring.