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Thread: Obamacare surcharge to be assessed by Florida Denny's proprietor

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    Obamacare surcharge to be assessed by Florida Denny's proprietor

    A number of businesses aren't entertained by the Affordable Care Act and face increased costs because of mandatory insuring of workers. There is a growing backlash, including the owner of a number of Florida Denny's, who pledges an “Obamacare surcharge,” a 5 percent fee, on each client's bill.

    Accusing Obama for the surcharge

    According to the Daily Mail, the proprietor of 40 Denny's restaurants in the state of Florida, also as a small chain called Hurricane Grill and Wings, is less than pleased with the portion of the Affordable Care Act. Also erroneously called “Obamacare,” the legislation mandates that as of Jan. 2014, all employers who have 50 or more full-time workers have to either offer their employees insurance or pay a $2,000 fine per employee over the number 30.

    A business that does not offer insurance but has 51 employees will end up paying a fee of $42,000.

    However, John Metz would have to pay $5,000 per employee to insure them, or $175,000 per location, less than the total income of most sites. He is forced to cut employee hours and to impose an “Obamacare surcharge” on customer's bills.

    Requiring an additional five percent

    The “Obamacare surcharge” that Metz is going to enforce is a 5 percent fee, which he claims he is being forced to pass on to customers. As for his employees, he is cutting back all employees' hours to 30 or fewer hours, the minimum threshold the regulation allows for before mandating they be insured.

    Metz maintains he absolutely wants to insure his employees, but cannot afford to given the margins on restaurants and certainly with the high prices imposed by the legislation.

    The Affordable Care Act has also angered Papa John's CEO John Schnatter, according to the Huffington Post. He claims that he will have to charge 12 cents more per pizza since his business will lose $5 million to $8 million a year with the new law. He also will have to cut employees back to part-time work.

    People not interested in paying high cost

    The “Obamacare surcharge” certainly is sure to alienate some assuming his calculations are correct, certainly put between a rock and a hard place by the legislation. An additional $175,000 expense per restaurant for insurance is no joke; not accounting for the Hurricane Grill and Wings sites he owns, that would cost him $7,000,000 to insure his workers at Denny's restaurants.

    The September Papa John’s giveaway of 2 million free pizzas cost the business $32 million. Still, apparently the business cannot afford $8 million to pay for its workers to get health insurance, according to Forbes writer Caleb Melby. The chain would only have to increase pizza prices by 4.6 cents at the most to absorb the $8 million too, according to Melby, so Papa John’s does not have a right to be angry.

    Sources

    Daily Mail

    Huffington Post

    Forbes
    Last edited by DennyCrane; 05-17-2013 at 04:38 AM. Reason: Link removed

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