Dunkin' takes shot at modifying Obamacare
The company is lobbying the government to narrow the Affordable Care Act's definition of 'full time,' which would mean fewer employees for it insure.
The question of who counts as a full-time worker is coming under fire from Dunkin' Brands (DNKN), which wants the government to narrow its definition under Obamacare. That's because it wants to avoid paying health insurance for Dunkin' Donuts employees who work as little as 30 hours a week.
Dunkin' Brands is lobbying the government to change the U.S. Affordable Care Act's definition of "full-time" to employees working at least 40 hours a week, instead of the 30 hours currently written into the law, Chief Executive Nigel Travis told the Financial Times.
The latest volley from an iconic U.S. business comes as the ACA is set to go into effect next year. The law will require employers with 50 or more full-time employees (30 hours or more) to offer those workers "minimum essential" healthcare insurance.
Dunkin' Brands, which also owns Baskin-Robbins, operates on a franchise model. The parent company, excluding workers at its company-owned restaurants, employed more than 1,120 people at the end of 2011, according to its annual report.
But the real benefit would likely go to Dunkin's franchisees, who operate more than 10,000 Dunkin' Donuts locations and almost 7,000 Baskin-Robbins restaurants.
Other big businesses are lashing out at the costs of the plan. Supermarket chain Kroger (KR) told the FT that some companies might decide to pay the government-mandated penalty for failing to insure employees simply because it's cheaper than buying insurance.
Small-business owners are also reacting. As previously reported by MSN moneyNOW, one Wendy's franchise in Nebraska is cutting back the hours of non-management employees to avoid paying health benefits. The local franchise vice president said his company couldn't afford to pay for health insurance and instead is cutting hours of about 100 Wendy's workers.
Other businesses are keeping their employee count under 50, the FT notes.
The average cost to employers of providing insurance for a single worker is $4,664 and $11,329 for a family, the FT notes, citing the Kaiser Family Foundation. The penalty for not insuring employees under Obamacare, meanwhile, is $2,000 per worker.
"If you look through the economics of the penalty the companies pay versus the cost to provide coverage, the penalty's too low, or the cost of coverage is too high, or the combination is wrong," Kroger Chief Executive David Dillon told the newspaper.
HERE YOU GO! EXACTLY WHAT REPUBLICANS AND CONSERVATIVES SAID! RATES ARE GOING UP AND SERVICES CUT AND BUSINESS DECIDING TO PAY THE FINE INSTEAD OF
PAYING HIGH COST OF OBAMACARE AND YOU'LL BE FORCED INTO SINGLE PAYER BIG GOVT
NANNY STATE HEALTHCARE WITH DEATHPANELS! ONE OF THE PROGRAMS IS ALREADY F-
ING BROKE!!! WHERE IS THE NEWS MEDIA! OBAMACARE IS A DISASTER ALREADY! YOU BIG
DOPES WHO THINK OBAMACARE IS GONNA BE GREAT CHEAP HEALTHCARE ARE RETARDS!
Man, is this a great country or what? You don't have to work...food stamps, subsidized housing, reduced utilities or at no cost, you don't even need any papers.
Illegally here? No problem...so what? You still get free health care...go to any ER or free clinic. Why work...just live off the backs of those that are working and paying for your free ride. Vote those workers out of office if they won't come up with more give aways.
Once you employee a couple people....you'll better understand the economics of Obamacare. Dunkin Donuts and delivering pizzas should be a part-time job for those still in school or at home (Remember, management at those locations DO pay benefits). Selling donuts over the counter should NOT be a career choice!!!!
BTW: I employee 100 people and already provide better coverage than required and have calculated I could save $250K per year by simply paying the penalty (but I won't)........I also have 8 people working for me that make MORE money than I do!!!!
Not exactly related but ....
I would like to see the Obamacare exemption list, Name of company/group and the number of people.
Who can get out of it, and why.
If anyone knows where a list can be obtained please let me know.
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[BRIEFING.COM] Equity indices closed out the month of August on a modestly higher note. The Russell 2000 (+0.6%) and Nasdaq Composite (+0.5%) finished ahead of the S&P 500 (+0.3%), which extended its August gain to 3.8%. Blue chips lagged with the Dow Jones Industrial Average (+0.1%) spending the bulk of the session in the red.
The final week of August represented one of the quietest stretches for the stock market so far this year. The first four sessions of the week produced the ... More
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