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.
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.
No insurance, no problem, just go to the emergency room and they will give you free care. doctors, nurses, technicians, janitors, hospital food service and other hospital employees will not get a raise because the hospital has not money because of all the free care, then next year everyones insurance rate go up to pay the costs of keeping the hospital open. Moral, YOU will pay for it through higher hospital costs to offset free care or 15 cent more for burgers at Mcdonalds because the owner provides insurance for his employees
be a good republican and say, screw the hourly workers , they should have gotten a college education in the first place, then they would have insurance
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!
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