Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Health Care Reform To Hit Low-Paid, Part-Time Workers Hardest - Study
International Business Times ^ | August 9, 2012 | Moran Zhang

Posted on 11/09/2012 11:21:04 AM PST by grundle

Nearly two-thirds of employers expect to see a cost hike in their health plans when the Affordable Care Act goes into effect in 2014, according to new data from the consulting firm Mercer.

Employers in the restaurant and retail industries -- those with a large number of hourly wage workers who traditionally had minimal or no health insurance -- are more likely than other companies to drop their health plans or cut worker's hours in order to maintain their already slim profit margins.

According to a Mercer survey of 1,203 employers, nearly half of retail and hospitality employers expect the health care overhaul to push up cost by at least 3 percent in 2014, with another third don't yet know what the impact will be.

Papa John's CEO John Schnatter told shareholders during a conference call last week that the health care reform will cost the company an additional 11 cents to 14 cents per pizza, which equates to 15 cents to 20 cents per order.

McDonald's Corporation (NYSE: MCD) voiced similar concerns. The world's largest restaurant chain's CFO Peter Bensen said during a conference call in late July that complying with the health care law will cost as much as $420 million annually. McDonald's will likely raise its menu prices when the law goes fully into effect in 2014 to cover the health costs, according to CFO Journal .

"With health benefit cost already rising at twice the rate of general inflation, an additional increase of 3 percent or more will be very tough for employers to absorb," Sharon Cunninghis, leader of Mercer's U.S. Employee Health & Benefits business, said in a statement.

The major provisions of the so-called Obamacare scheduled to take effect in 2014 affect employers with large numbers of part-time and low-paid workforces. For example, beginning in 2014 employers with 50 or more full-time workers -- defined as those working at least 30 hours a week -- will be required to extend coverage to all full-time employees or face possible penalties of $2,000 per employee.

Many retail and restaurant employers hover around the 50-worker threshold and feel that it would make economic sense to stay small -- cut hours or eliminate worker -- to avoid triggering the requirements of the law.

Mercer found that about 46 percent of restaurant and retail companies said they would have to change in some way once the law comes into effect, compared with 16 percent of financial-services companies.

"Extending coverage to more employees will be a significant new expense for these employers," said Tracy Watts, Mercer U.S. health care reform leader in Washington.


TOPICS: Miscellaneous
KEYWORDS:

1 posted on 11/09/2012 11:21:10 AM PST by grundle
[ Post Reply | Private Reply | View Replies]

To: grundle

One of the “sad and bitter fruits” of the mess of Tuesday’s Election Day.


2 posted on 11/09/2012 11:24:14 AM PST by Biggirl ("Jesus talked to us as individuals"-Jim Vicevich/Thanks JimV!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: grundle

And full time jobs are evaporating as more employers switch to part time to avoid Obamacare costs.

http://confoundedinterest.wordpress.com/2012/11/08/vampires-werewolves-and-the-post-election-market-reaction/


3 posted on 11/09/2012 11:26:06 AM PST by whitedog57
[ Post Reply | Private Reply | To 1 | View Replies]

To: grundle

These are the folks who voted for the Obamunist. I say screw ‘em. They got what they wanted.


4 posted on 11/09/2012 11:27:10 AM PST by Thane_Banquo ( Walker 2016)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Biggirl

Whatever draconian rules against capitalism are implemented outside of outright domination aided by terror and murder, capitalism will always find a way to beat it.

That’s because we are just plain smarter than they are. As long as they still follow some sort of rules, we will perservere - count on it. If they move to terror and murder, well, they’ve stepped in some real shit.


5 posted on 11/09/2012 11:28:07 AM PST by Gaffer
[ Post Reply | Private Reply | To 2 | View Replies]

To: grundle
The GOP needs to allow Obama's policies to run their course. The Democrats are either right -- and will lead us into Utopia -- or they are wrong -- in which case, they must be seen to be wrong by the voters.

Allow the differences between the parties to be visible. Do not muddy the waters by trying to "own" half of what Obama puts in place. Compromise and particiaptation in the march off the cliff do not help the country, and do not help the party.

6 posted on 11/09/2012 11:28:18 AM PST by ClearCase_guy (Global Warming is a religion, and I don't want to be taxed to pay for a faith that is not mine.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: grundle

7 posted on 11/09/2012 11:33:08 AM PST by ScottinVA (I've never been more disgusted with American voters.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ClearCase_guy
The Democrats are either right -- and will lead us into Utopia -- or they are wrong -- in which case, they must be seen to be wrong by the voters

You're spot on. The voters said, "let's have socialism." So... let 'em have it. Republicans in the House should step aside and abstain on every tax hike vote, but very emphatically remind everyone... YOU WANTED THIS!!!!"

8 posted on 11/09/2012 11:35:19 AM PST by ScottinVA (I've never been more disgusted with American voters.)
[ Post Reply | Private Reply | To 6 | View Replies]

To: grundle
simpsons_nelson_haha2[1]
9 posted on 11/09/2012 11:35:50 AM PST by Drill Thrawl (We have crossed the line from independence & liberty to dependency & servitude. We are doomed)
[ Post Reply | Private Reply | To 1 | View Replies]

To: grundle
Well if they make under 75K they will get their cost subsidized from the government and the threshold may be higher for families. Does it really matter we are all screwed what can you do.and seems like there is no way to get rid of Obamacare. I don't even want to think about it anymore but I am not worried about low wage earners they are covered and am really sick about seeing stories how low wage earners bear all the brunt of all the problems it is bullshit.
10 posted on 11/09/2012 11:38:39 AM PST by funfan
[ Post Reply | Private Reply | To 1 | View Replies]

To: grundle
Well if they make under 75K they will get their cost subsidized from the government and the threshold may be higher for families. Does it really matter we are all screwed what can you do.and seems like there is no way to get rid of Obamacare. I don't even want to think about it anymore but I am not worried about low wage earners they are covered and am really sick about seeing stories how low wage earners bear all the brunt of all the problems it is bullshit.
11 posted on 11/09/2012 11:38:58 AM PST by funfan
[ Post Reply | Private Reply | To 1 | View Replies]

To: ScottinVA

I agree we should let them have it. We know the outcome.

But, also, we need to study other times and places in history where the inevitable results have come to pass and prepare accordingly,

mostly so that just those who believe it will lead to utopia end up being the ones suffering, not us.


12 posted on 11/09/2012 11:40:11 AM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
[ Post Reply | Private Reply | To 8 | View Replies]

To: Biggirl

Doesn’t matter. Bush will be blamed, and the population that voted for Obama will believe it.


13 posted on 11/09/2012 11:43:04 AM PST by COBOL2Java (The GOP-e said "Beat a Marxist with a Liberal!" What a colossal blunder.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: grundle

I better not hear any blacks or Latinos complain about how hard it is to get a job over the next four years. This is what you guys came out in record droves to vote for. Enjoy!


14 posted on 11/09/2012 11:43:35 AM PST by paglia444
[ Post Reply | Private Reply | To 1 | View Replies]

To: whitedog57

Don’t worry. Won’t be long before Obama and Co with the blessings of Bonehead fix that loop hole.

It will be changed to “if your employed. You must be covered”


15 posted on 11/09/2012 11:46:16 AM PST by cableguymn (The founding fathers would be shooting by now..)
[ Post Reply | Private Reply | To 3 | View Replies]

To: grundle

They wanted this, they want more dependednt unemployed leeches and they got them, give them more.....

Atlas Shouldn’t Shrug, Atlas should get even!

If an army of dumbed down leeches takes 50 years to take down a system and collapse it...

Imagine what a group of producers who are pissed off and know hard work and are extremely motivated can do in 4 short years!

They want Communism, Maybe we should give them so much damned communism they choke on the damn stuff by collapsing the socialist systems they have “frog boiled” us into taking.


16 posted on 11/09/2012 11:47:36 AM PST by GraceG
[ Post Reply | Private Reply | To 1 | View Replies]

To: grundle

F*** ‘em. They’re the bastards that elected Obama. Let them reap the whirlwind.


17 posted on 11/09/2012 11:48:53 AM PST by Cyber Liberty (Obama considers the Third World morally superior to the United States.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: COBOL2Java

Bush can’t be blamed for Obama’s second term. Obama will have to blame his immediate predecessor, himself.


18 posted on 11/09/2012 11:49:13 AM PST by Crucial (Tolerance at the expense of equal treatment is the path to tyranny.)
[ Post Reply | Private Reply | To 13 | View Replies]

To: COBOL2Java

The, “it’s the House Republicans fault” drumbeat has already started.


19 posted on 11/09/2012 11:50:29 AM PST by corlorde (forWARD of the state)
[ Post Reply | Private Reply | To 13 | View Replies]

To: Crucial
Bush can’t be blamed for Obama’s second term

Oh you have no idea how wrong you are.

Logic would dictate that you are correct, but we all know that logic and progressivism go together like liberal and work ethic.

20 posted on 11/09/2012 11:53:53 AM PST by Drill Thrawl (We have crossed the line from independence & liberty to dependency & servitude. We are doomed)
[ Post Reply | Private Reply | To 18 | View Replies]

To: grundle
Health Care Reform To Hit Low-Paid, Part-Time Workers Hardest - Study

I wonder how many of these hardest hit are in NJ/NYC waiting on FEMA.

21 posted on 11/09/2012 11:54:58 AM PST by Jane Long (Soli Deo Gloria!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: paglia444

Or Catholics or Jews or Asians or women or Muslims.


22 posted on 11/09/2012 11:57:23 AM PST by petitfour
[ Post Reply | Private Reply | To 14 | View Replies]

To: Crucial
Bush can’t be blamed for Obama’s second term. Obama will have to blame his immediate predecessor, himself.

Good luck telling that to this lady. She's the new face of half the Americans.


23 posted on 11/09/2012 12:05:13 PM PST by COBOL2Java (The GOP-e said "Beat a Marxist with a Liberal!" What a colossal blunder.)
[ Post Reply | Private Reply | To 18 | View Replies]

To: grundle
Health Care Reform To Hit Low-Paid, Part-Time Workers Hardest - Study

On the bright side, they've got their free 0bamaphones!

24 posted on 11/09/2012 12:19:38 PM PST by The Sons of Liberty (Never Underestimate the Power of Evil or Evil Doers)
[ Post Reply | Private Reply | To 1 | View Replies]

To: COBOL2Java

....And the half of what I am VERY AFRAID we could very well see, a second civil war, the “face” of the side that will DEMAND MORE from the side that is being “looted” from, or in other words, Paul robbing from Peter.


25 posted on 11/09/2012 12:22:09 PM PST by Biggirl ("Jesus talked to us as individuals"-Jim Vicevich/Thanks JimV!)
[ Post Reply | Private Reply | To 23 | View Replies]

To: Biggirl
....And the half of what I am VERY AFRAID we could very well see, a second civil war, the “face” of the side that will DEMAND MORE from the side that is being “looted” from, or in other words, Paul robbing from Peter.

Well, of course! Paul's entitled to it - don-cha-know...

26 posted on 11/09/2012 12:24:51 PM PST by COBOL2Java (The GOP-e said "Beat a Marxist with a Liberal!" What a colossal blunder.)
[ Post Reply | Private Reply | To 25 | View Replies]

To: funfan

***Well if they make under 75K they will get their cost subsidized from the government***

The cost will be subsidized by those making $75,001 and up.


27 posted on 11/09/2012 12:52:11 PM PST by Gamecock (Bayonets, Benghazi, Balls, Binders, Big Bird, Birth Control, BS.....)
[ Post Reply | Private Reply | To 11 | View Replies]

To: grundle; Grampa Dave; tubebender; budwiesest; calif_reaganite; NormsRevenge
So this is "Social Justice," right? (snort!)

What an unmitigated Demo/Socialistic mess!!!

And they'll take exactly the wrong "message" out of this last election victory. He's already stating that America agrees with his worthless DOA deficit/debt reduction plan. He's already set his feet in concrete while pretending to "reach out" to Repellicans. We've been down this very same road quite recently with this arrogant prig!!!

28 posted on 11/09/2012 1:16:50 PM PST by SierraWasp (Welcome to the next 50 months of an unprecedebted lame duck session!!!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Gamecock

Yep unless you are exempt form it.


29 posted on 11/09/2012 2:40:06 PM PST by funfan
[ Post Reply | Private Reply | To 27 | View Replies]

To: Biggirl

At this point, how would that be worse?


30 posted on 11/09/2012 6:37:08 PM PST by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
[ Post Reply | Private Reply | To 25 | View Replies]

To: grundle

Drop the benefits and increase the pay so they can pay for their own health care.


31 posted on 11/09/2012 6:40:26 PM PST by Salvation ("With God all things are possible." Matthew 19:26)
[ Post Reply | Private Reply | To 1 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson