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.
Government isn't the problem people. They should change the law by raising the penalty through the roof, so businesses can't use that as a loophole. Then turnaround and penalize the insurers for rate increases beyond the rate of inflation.
The repubs and conservatives undermined the bill by not allowing a public option to give everyone another option besides private insurers who are price gouging. The bill didn't go far enough. Scare tactics worked, and now you see the consequences.
Businesses would've flooded the public option, which would've drove rates down by creating competition for these private insurers.
A few months ago we heard Papa John's Pizza complaining that ObamaCare would force them to increase pizza prices by 10 cents a pie.
So how much more will a Donut or ice cream cone cost at Dunkin Brand stores?
I'm sure every true American wouldnt mind paying a couple cents more per donut so that their fellow americans serving them a donut could have health care.. Right?
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!
The above is the exact the same reason Wall Street crooks continue to cheat, defraud and steal from investors........the mass of riches they might accumulate and secret away is far greater than the relative punishment for their crimes(if they get caught). Conscience plays no part in their decisions, as it does not with any crook.......it is wholly a game of chance..... that is, how much money can be gained against what may be personally lost in prison time.
And, how much prison time is worth a lifetime of living like a king after prison on those ill-gotten gains? When our society and gov't laws, rules and practices, or lack thereof, encourages anyone to even consider that behavior proves that there is something terribly wrong with our system. Is there now even any public or gov't concern about fixing it? Therein lies the rub.
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