Ohio hamburger chain says insurance reform will bite into profits

[The Straight Story]

Ohio hamburger chain says insurance reform will bite into profits

WASHINGTON, D.C. - The White Castle hamburger chain fears that a health insurance reform law adopted earlier this year will put its profits on a downward slide.

The Columbus-based family owned restaurant chain - known for serving small square hamburgers called "sliders" – says a single provision in the bill will eat up roughly 55 percent of its yearly net income after 2014.

Starting that year, the bill levies a $3,000-per-employee penalty on companies whose workers pay more than 9.5 percent of household income in premiums for company-provided insurance.

White Castle, which currently provides insurance to all of its full-time workers and picks up 70 to 89 percent of their premium costs, believes it will likely end up paying those penalties. The financial hit will make it hard for the company to maintain its 421 restaurants, let alone create new jobs, says company spokesman Jamie Richardson. White Castle employs more than 10,000 people nationwide, and more than 1,200 in Ohio.

http://www.cleveland.com/open/index.ssf/2010/07/ohio_hamburger_chain_says_insu.html

[madrchsod]

1. white castle should pay people to eat their food....

[Skink]

2. Maybe they could put more antibiotics in the meat?

then they could get the meat packing companies to pack the cows tighter than the two inches they are allowed to move around in their own manure while they are alive.

[Rabrrrrrr]

3. For the love of all that is holy, why can't we just go to a national health care system

that covers everyone at a decent, humane level, and leave it up to companies to decide if they want to offer something better to their employees.

What a fucking joke.

Health insurance shouldn't be tied to peoples' jobs, and businesses shouldn't have to be the only place that people can get health insurance from.

[kath]

18. + a brazillion.

Access to health care should not be tied to people's jobs. It's a total fucking nightmare.

[area51]

19. +1

Each day, 273 people die due to lack of health care in the U.S.

We need single-payer health care, not a welfare bailout for the serial-killer insurance agencies.

[Sherman A1]

22. +1, Agreed & Well Said!

[WinkyDink]

20. Exactly. HC should be for CITIZENS, not lucky employees! And TPTB want to RUIN EUROPE to stop THEIR

HC system.

[HughBeaumont]

23. Because that would mean the people would have a smidgen of hope.

Without being tied to a job because of the health insurance, they could start their own businesses. Or get educations. Or not worry that they'll be financially ruined should something happen to them.

And the owners can't have that. Zero-Sum all the way. "It's not enough that I succeed, but also that everyone else must fail", and all that.

[bluestateguy]

4. Sounds like they are not running their business very well then

Of course we could have had a public option, which would have been cheaper for businesses, but we were told that was socialism so we didn't do it.

[Mimosa]

5. Nope, we needed universal healthcare with a tax on businesses...

But nooo....

[rurallib]

6. Looky there - John Boner is cited as an expert

"Though advocates of the health insurance bill say its reforms will boost employment, House Republican Leader John Boehner of Ohio, a vocal foe of the changes, says White Castle's analysis shows how the law's "job-crushing" impact will be most severe in lower-income areas, where jobs like those at White Castle are most needed."

let's wait for a more reliable source. Just guessing, Boner and the slider folks are gaming the system.

[FrenchieCat]

17. Neato!

Boehner is just Peachy Keen, and a real "Expert" too! :bounce:

[DJ13]

7. I predict this sob story will be repeated a thousand times

Its too bad these shortsighted companies didnt get behind a true single payer plan that would have saved themselves (and their employees) a lot of money.

You're stuck with it now, who's fault is it?

[Oregone]

9. If everyone follows suite, its not shortsighted

Its a level playing field and less burden on employers (more on workers)

[Oregone]

8. This pragmatic refrom will prolly end up forcing people, as individuals, into the marketplace

Get ready to see the national average actuarial value drop like a rock and workers taking on an increasing burden

The US needed a national health care plan yesterday. Instead, they settled for a piece of shit

[Mimosa]

10. Oregone, we didn't have a chance

I know many people who spent a lot of time emailing Congress and Senate.

I did it a lot. Never once did I receive an automated reply, even.

[Oregone]

11. Sorry

:(

[unkachuck]

12. pay your people....

....a better wage then premiums won't be 9.5% of income....see, a simple solution for a simple problem....

[On the Road]

13. This is an Issue with the Law

It should have been considered and the priorities changed in the bill. I don't blame White Castle for complaining -- it is ridiculous for them to have pay this kind of penalty while maintaining insurance coverage on their employees.

I just hope Congress wakes up to this kind of thing and raises those limits before the full effect is felt. It is one of a number of ticking time-bombs that will be all over the news once the regulations begin to kick in.

[TheMadMonk]

14. I guess that's dependent on the wording of the bill.

If 11-30% of the premiums is still more than 9.5% of houshold income then the system is so seriously fucked that NOTHING will save America.

Realistically, the only way the bill could do this, is by deeming the 70+% payed by the employer to be income.

[Crunchy Frog]

15. If they go out of business, maybe it will lower our nation's healthcare costs.

[glowing]

16. bullshit.. The ceo should take the pay cut this time. Or pay the employees

more, and maybe the economy would beging to bounce back a little, then more people would come in and eat. Stupid, pathetic quarterly thinking idiots.

[rucky]

21. I thought people on group plans would not be affected.

:shrug: