Hits Fast Food Business-Owners
Food Nation: The Dark Side of the All-American Meal.
of 2002 book by investigative journalist Eric Schlosser on social consequences of
23, 2012 - The
Patient Affordability Care Act (aka Obamacare) stipulates that on January 1,
2014: Every full time employees must be provided with comprehensive medical
coverage if the company employs more than 50 full-time workers.
To fast food corporations and fast-food franchise
owners, who operate on razor-thin margins,
this stipulations hits like a profit-killing thunderbolt. How do you stay in business in a competitive marketplace,
when this stipulation would dramatically increase your expenses for providing
health benefits. “Comprehensive” government
sanctioned health benefits, are, by definition, more expensive than currently provided in
If you do not choose to
provide government approved plans, you
will be fined $2000 for each full-time employee. For Appleby’s in New York City along, this
would cost $600,000. For Applebys
nationwside for th other firms like Papa Johns, Dennys, McDonalds, Burger King, and
Wendy’s, the cost would be enormous, in the billions of dollars.
If you are a business planner for a fast food
restaurant chain, what are your option?
- Do not hire more full time employees.
Raise prices, as Papa Johns has done by
increasing the price of its pizzas.
If you are a worker for these chains, your options
Pay for your own health insurance with
your greatly reduced income.
Work for multiple fast food restaurants.
Go on Medicaid, for which you may now
quality and accept the fact that not enough doctors accept Medicaid patients
and he benefits are less than private plans.
When Obamacare passed, it was no doubt done so with
as Samuel Johnson observed, “The road to hell is paved with good
intentions” and adverse consequences for those it was intended to help – lower
incomes, paying for one’s health insurance,
or going on Medicaid, if you qualify.
Good intentions have consequences.
Obamacare provision that businesses with more than 50 full time workers
must offer comprehensive health benefits has adverse consequences
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