ObamaCare Causes Huffington Post Parent Company to Cut Benefits

Arianna-Huffington-Tim-Ar-007

99 percent!

Considering that AOL now only exists to dump Huffington Post spam on the web, I don’t think it’s unfair to describe Tim Armstrong’s boondoggle as HuffPo’s parent company.

Ironically, AOL chief exec Armstrong blames ObamaCare for the 401k cuts even though he stupidly paid $315 million for a publishing platform for unpaid bloggers and lefty activists to promote ObamaCare and lie about its benefits.

AOL chief executive Tim Armstrong on Tuesday offered a number of unusual explanations for why his company pulled back its 401(k) benefits for employees this year. The first reason: Obamacare. The second: two women at the company who had “distressed babies” in 2012.

The stock, which started off strong this morning because of a good earnings release by AOL, has now fallen nearly three percent today.

How did this mess begin? The Washington Post reported Tuesday that AOL quietly made a major change to its 401(k) plan by switching its match to a lump sum at the end of the year, rather than contributing with every paycheck. The benefit is only available to employees who are still active on Dec. 31.

Retirement experts widely agree that the change hurts all employees–not just those who leave mid-year–since savers miss out on the benefits of investing more money throughout the year, a strategy known as “dollar cost averaging.”

When he was asked on CNBC this morning why AOL was making the change, Armstrong said it was to spare employees from what he described as the added costs of Obamacare.

“As a CEO and as a management team, we have to decide: Do we pass the $7.1 million of Obamacare cost to our employees? Or do we try to eat as much of that as possible and cut benefits?,” said Armstrong in the CNBC interview.

Or Armstrong could have cut Arianna Huffington’s 4 million dollars a year salary. Just kidding.

The media’s Obama defense team is liming up to bash Armstrong and defend ObamaCare, as if a thousand other businesses aren’t giving variations of the same explanation for why they’re firing employees, cutting back on benefits, eliminating hours, and all the other goodies that turn formerly employed people into “free contractors” and empowering them to collect unemployment.

And I have no sympathy for Tim Armstrong whatsoever.

  • objectivefactsmatter

    AOL still exists?

  • http://www.christopherlondonblog.com/ Christopher London, Esq.

    SUPPORT LOCAL JOURNALISTS & A GREATER DIVERSITY OF VIEWPOINTS IN AMERICA – Arianna Huffington was for a long time a right wing operator who seemingly switched allegiances in an effort to co-opt the Progressive Narrative via the Huffington Post. At one point I was a big reader and commenter on this site. Yes, I was part of the cheerleading machine. I have long since cut back viewing and commenting on the site. Why? A couple of reasons.

    Tell you the truth, it was not just their switch to documenting every element of the inane celebrity drek and pseudo news and disinformation and and feeding it to the public although that was a significant part of it. But I have also become increasingly uncomfortable with concentrated control of “National Press” in the hands of a few people, especially when that National Press seems to “Go Local” and become the WALMART OF NEWS crowding out local journalism, often actually by quoting the opening pargraphs of stories written by ‘ACTUAL’ Journalists, only to find that the monolithic entity has re-directed traffic to their site on the search engines for stories written on other websites. So, in effect Internet readers unwittingly read the key material on a website of an entity that did not support that journalists work in the first place. In short, that kind of chicanery is simply kind of “fucked up” and reaks of another agenda entirely.

    I would like to see a great support and proliferation of truly LOCAL views by LOCAL journalists with a GREATER DIVERSITY of viewpoints. Furthermore, the CENSORSHIP of comments, especially from long time readers and commenters on the HUFFINGTON POST is problematic. I am a mainstream NEW YORKER who occasionally has spouted an alternative or contrarian view without cursing or calling for a revolution and yet that got my email address banned when I went to sync my Facebook with HUFFPO. This is very bad policy and opens up Ms. Huffington to the worst kind of critique: Ms. Huffington, are you running in effect a “PROPAGANDA MACHINE”?

    I am as uncomfortable with any individual, even one who sold out to AOL, having such a large say and control over a news and information medium. Frankly, I think there need to be more controls/limits on folks like Arianna Huffington rather than fewer controls. #HuffingtonPost #NYTimes #AriannaHuffington #Propaganda #CelebrityDrek #FauxJournalism #Meglomania #Progressive #BreitbartNewshttp://en.wikipedia.org/wiki/Arianna_Huffington

  • A Z

    two women at the company who had “distressed babies”

    This means what? AoL has 5,600 employees. It has a 1.048 billion net income.

    What will he blame next year? An ingrown toenail?

    The difficult pregnancies cost $ 1 million each. I suppose cancer treatments for a few of the 5,600 could cost as much.

    What did he want to do? Expose the babies like the ancient Greeks did?

    I think he got over charged for the hospital bill (granted overcharge or not the bill would have been expensive).

    • Daniel Greenfield

      I think he’s making excuses and covering for bigger issues with the company.

      • A Z

        You could turn an expensive pregnancy or cancer treatment into a moral boosting pep talk at employee meetings and in the company newsletter. It would engender loyalty that you could count on. People still get comfortable and backslide so you could not solely depend on this, but there was a silver lining to this medical expense.

        ‘The costs of childbirth can be steep. The charge for an uncomplicated cesarean section was about $15,800 in 2008. An uncomplicated vaginal birth cost about $9,600, government data show.”

        -http://www.webmd.com/baby/features/cost-of-having-a-baby?page=2

        So these pregnancies were 100 times the normal cost. that hurts. I wonder how old these women were, what other factors there were and if the hospitals overcharged and how long the mothers were in the hospital.

        Money talks and bullshite walks. The company paid this last year, but now it gave notice it intends to walk.

        • Daniel Greenfield

          Armstrong isn’t the kind of guy who thinks that way. He’s an ad salesman whose only idea is to spam more content.

  • Steeloak

    There is an old German expression that sums it up best: “Die reinste Freude ist die Schadenfreude.”
    Couldn’t happen to a nicer bunch of folks!

    • A Z

      “The purest joy is the Schadenfreude.”

    • BenZacharia

      U speeled ‘f**cks’ wronnge. :-)

  • Lanna

    So reap what they sew, reality check going to hit them over the head. Huff Po and parent company loves Totalitarian governments be prepared to sacrifice,

  • freedomfighterx

    poor little commie PIGS, what’s they matter you no liken the communism you help create? Now bath in it with your commieKING.