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Lorri Mealey

How President Obama’s Health Care Reform Will Affect Restaurants

By , About.com GuideFebruary 17, 2009

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Making good on campaign promises, President Barack Obama signed into effect the expansion of the State Children’s Health Insurance Program, calling it “a down payment on my commitment to cover every single American.”

While few can argue that health care in the United States is in need of reform, many business leaders are concerned about some of President Obama’s plans for implementing changes. According to an article in the Business Review, one reform the new president supports is employer mandates to provide health insurance. Those businesses that do not offer employees some type of health care would be obligated to pay the government instead. While this may be good in theory, the reality is that the cost of health care is twice what it was a decade ago and premiums continue to go up. According to the National Federation of Independent Business, small businesses pay 18% more on average for health insurance for their employees than larger employers. According to the NFIB, employer mandates in 2009 could cost up to 1.6 million jobs over the next five years. Those hardest hit? Construction industries and…you guessed it…Restaurants. Ask any independent restaurateur if they have money to pay for any type of health insurance, and most likely the answer will be no. At a time when the restaurant industry is at all time low, the last thing it needs is government mandates add more weight to an already heavy burden.

What do you think? Should all restaurants (independent and franchises) have to offer health insurance to their employees? Why? Why Not? Share your thoughts at the Restauranting Forum.

Comments
March 22, 2010 at 9:17 pm
(1) anne says:

i do not think owners of restraunts should have too pay fines, because this new health bill would put some of them out of business. the government is supplying full coverage for kids on there parents policy, if they are in college or out of college trying too find a job. they can stay on there parents policy until age 26. the kids that can not afford too go too college have too take out cobra and try too find a way too pay it some how. this is totally unfair. the kids that can not afford too go to school should be the ones getting it until age 26, some of them have juvenile diabetes and other diseases, and are struggling too pay there premiums. if they give it too 1 they should give it too all kiids, and not expect these resteraunts too carry it for these kids that ca not afford it. the government should take care of these kids. i believe a lot of resteraunts will have too go out of business . they will be forced too do so if the government does not do something. this is totally unfair and i am not in the resteraunt business , but i have gran children who had too drop out of school becaause parents were laid off. these are the one”s that deserve. .

July 5, 2012 at 3:17 am
(2) Debbie Guest says:

Restuarants usually pay 2.15 an hour. They make 150% on mark-up on their food items. These resturants that say they will have to not hire as many ppl are crazy.

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