May 24, 2013

September 18, 2012


Franchisors warn Obamacare will halve profits

Yup.

But at least Obama was Really Really Sincere and Well-Meaning when he dreamed up this idea.

And that surely counts for something to the unemployed, you know?

Ah well.

More from The Examiner:

Barr has 23 stores with 421 employees, 109 of whom are full-time. Of those, he provides 30 with health insurance. Barr said he pays 81 percent of their Blue Cross Blue Shield policy, or $4,073 of $5,028 for individuals, more for families, for a total bill of $129,000 a year. Employees pay $995.

Under Obamacare, however, he will have to provide health insurance for all 109 full-time workers, a cost of $444,000, or two and half times more than his current costs. That $315,000 increase is equal to just over half his annual profit, after expenses, or 1.5 percent of sales. As a result, he said, “I’m not paying $444,000.”

Providing no insurance would result in a federal fine of $158,000, $29,000 more than he now spends but the lowest cost possible under the Obamacare law. So he now views that as his cap and he’ll either cut worker hours or replace them with machines to get his costs down or dump them on the public health exchange and pay the fine.


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13 comments

Oh, my merciful heavens!  Does this indicate that the Great _——- Hope, Fearless Leader, Annointed Man-Child, Savior of the free world (as we used to know it) made an error in judgement in developing his majestic, one size fits all, healthcare pronoucement?  Surely not, that would mean he is not omnipotent and omniscient, and we all know the DNC will not admit to that!

[1] Posted by Fr. Chip, SF on 9-18-2012 at 11:57 AM · [top]

Foreseen consequences cannot be claimed to be unforeseen.  I’m also of the mind that this was the intention all along, as more and more businesses are squeezed into kicking employees off their healthcare plans those employees will eventually turn to the Insurer of Last Resort:  The State.

Obamacare is the apotheosis of the corruption of the relationship of the citizen to his government.

[2] Posted by Jeffersonian on 9-18-2012 at 12:28 PM · [top]

They’ll just raise the fines to $445,000 to force him to buy in. That of course will lead him to divest and split the company into multiple 25 employee businesses. The govt. will then lower the threshold to force those smaller businesses to buy in. At that point he moves the whole deal to Mexico and says adios amigos!

[3] Posted by Undergroundpewster on 9-18-2012 at 02:50 PM · [top]

A few things
1 - With many hourly employees, for them to get some overtime is huge (time and a half). The law will push employers toward having people work less than 30 hours. Thus they will have to find - and schedule both jobs - just the travel will make life harder and cost them more - and they will take home less
2 - Employment companies with less than 50 employees will be organized - not owned by the business owner (restaurant, etc). They will be owned by someone who is paid a fee but has no voting or economic control of the business
3 - It will work the opposite of how people expect for companies that are close to 50 employees. The employees who get better benefits will have their salary etc paid through an outside firm ie the owner etc (Imagine Business Owners Inc which has 25 small business owners as their employees - they all get gold plated packages) - leading to even more disparity in benefits

[4] Posted by Paul PA on 9-18-2012 at 03:12 PM · [top]

The goal all along is to slowly move everyone to a single-payor system (goverment would be the single payor). 

This is of course a wealth redistribution scheme and a government control scheme first an formost.

http://www.youtube.com/watch?v=fpAyan1fXCE

[5] Posted by B. Hunter on 9-18-2012 at 04:15 PM · [top]

Good thing that the GOP is sitting on their hands this year.  Wouldn’t want to do anything radical that might differentiate themselves from the other party. 

What a croc.

[6] Posted by J Eppinga on 9-18-2012 at 04:26 PM · [top]

B. Hunter is right.  For Obama, it doesn’t much matter if the current version of Obamacare is a disaster or not.  Obama knows that the mainstream media have become a bunch of lackeys who will always present things the way he wants them to.  So when Obamacare fails, he knows full well that the public will not hear “Obamacare has failed!” but rather they will hear “those nasty, mean-spirited business owners are stripping health care benefits from their poor employees!  We should have government step in to fix it.”  And so Obamacare will expand.

[7] Posted by jamesw on 9-18-2012 at 05:35 PM · [top]

I agree with B. Hunter.

[8] Posted by Paula Loughlin on 9-18-2012 at 05:59 PM · [top]

[2] Jeffersonian,

You write

Obamacare is the apotheosis of the corruption of the relationship of the citizen to his government.

I must strongly disagree with your analysis. Obamacare is, rather, nothing more than the most recent foretaste of “the apotheosis of the corruption of the relationship of the citizen to his government” will look like when it achieves full bloom, whether in Obama’s second term, Romney’s first term or in the term of that future President in which the next Great Depression occurs. I have no insight into either when the onset of that depression will occur, and necessarily therefore no inkling of who will then be President.

What I can confidently say is that neither of the two major party candidates, nor any of the minor party candidates of whose positions I am aware, has put forward a plan for eliminating the national debt to a sufficient degree, and in an adequately near time frame, that has any realistic hope of preventing the onset of such a depression. Needless to say, I have not addressed the possibility of divine intervention as a possible solution, which now appears to be the only remaining hope.

Pax et bonum,
Keith Töpfer

[9] Posted by Martial Artist on 9-22-2012 at 02:47 PM · [top]

Further to my comment [9], above, I posted a blog article about similar data presented earlier this month by the CEO of CKE Restaurants, Inc. (franchisor of Hardee’s and Carl’s Jr. restaurants), whose figures are right in line with those of Mr. Barr.

Keith Töpfer

[10] Posted by Martial Artist on 9-22-2012 at 02:53 PM · [top]

Re [9] Gary johnson, Libertarian is your best hope for eliminating the national debt. He was WONDERFULLY thrifty as governor of New Mexico.  he would trim government drastically.  Not much chance for a Libertarian though. Other than that I agree.  Consider “The Harbinger.”

[11] Posted by Don+ on 9-22-2012 at 06:38 PM · [top]

Large corporations have already calculated the costs of Obamacare and are implementing responses.  At my son’s company, he and a number of others were laid off the week after Obamacare was upheld by the S.Ct.—the company said it needed to become “more efficient.” 

This is one big reason unemployment rates are not going to come down.

[12] Posted by Jim the Puritan on 9-22-2012 at 07:41 PM · [top]

[11] Don+,

You write:

Not much chance for a Libertarian though.

Alas, I am compelled to agree with your assessment. But what that suggests to me is that our children and grandchildren will likely experience an America which we would not recognize other than by comparison to the tyrannical regimes of past history.

Pax et bonum,
Keith Töpfer

[13] Posted by Martial Artist on 9-23-2012 at 09:40 AM · [top]

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