Now retailers that employ low wage workers are coming up with ways around Obamacare, to help save money. Many will soon be cutting back working hours or paying the penalties rather than provide insurance through the rules set up by Obamacare.
CEO of the Kroger supermarket company, David Dillion says that some companies might decide to pay a fine rather than insurance premiums because it would cost less.
And Dunkin’ Brands CEO Nigel Travis said the doughnut chain is lobbying to change the definition under Obamacare of full time work from 30 hours a week to 40, a move that would save companies money because they would end up ensuring fewer workers.
Also some fast food chains are considering slashing workers’ hours so that fewer would qualify for health insurance, while others are keeping their numbers of employees below 50 to avoid the insurance costs. Full time workers at Kroger will still have their coverage, but said some parts of the Obamacare law won’t work because the penalties may be less costly to companies than insuring their employees.
“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,” he said. “If [policy makers] get those things too far out of balance, everybody will have to reconsider their position on that point, including us. But we’re going to wait and see how that all develops.”
Obama sure has proven he’s anti business, hasn’t he? Not only is he ordering them to pay for something they can’t afford, he also wants the minimum raise increased……
Under the healthcare law, businesses with 50 workers must pay a fine of $2,000 per worker if they don’t provide insurance for full-time employees. The Kaiser Family Foundation, a non-partisan policy group, says insurance costs companies an average of $4,664 per year for single coverage and $11,429 for families.