I just learned that my grandson is quitting his job as a waiter at Applebees because they have cut his hours to 30 per week. They have done the same to all of their employees. No more than 30 hours per week for anyone. Of course, this is so that Applebees will not have to provide health insurance for its employees. It would appear that Applebees is not the only corporation that is doing this.
In times of severe unemployment throughout the nation, this is obviously a very bad trend.
Why didn't the folks who drafted the current health care legislation anticipate that this would happen, and have a provision in there that would close this loophole?
They did know about it. The major companies said openly they intended to do this.
The reason they didn't close this loop hole, is because the companies said that without it, they would simply cancel insurance all together, and pay the $96 dollar tax fee.
So either way, the results would be the same.
What people don't seem to grasp, is that companies do not have one penny that doesn't come from either lower wages, or higher prices.
When the government passes a law that drives up the cost of health care on a company like Applebees, they can't simply just increase their prices because other restaurants will not increase their prices, and then they lose customers and ultimately close. Then all those employees have no health insurance or a job at all.
So if the company must pay a higher cost for health insurance, and they can't increase their prices to customers to offset that, then the logical conclusion is that they have to drop insurance coverage. Either by reducing hours, thus avoiding the requirement, or simply not haven't insurance at all.
Say you wanted someone to mow your lawn, and a guy came and said he would mow your lawn for $30 a mow. You might do that. That is a reasonable amount.
Now say the government came along and said you have to pay that wage, but also pay a $70 health insurance program for lawn care people.
Now you have to pay $100 a mow. Would you do that? No you would not.
The only difference between you and the lawn mower guy, and you the customer and the Applebees employee, is that there is a this company between you and the employee.
But you are not going to pay $60 for a Applebees meal, just so the waiters can get a good insurance plan, anymore than you are going to pay the lawn mower guy $100 a mow, just so he can get a good health insurance plan.
The customers are not going to pay huge prices for basic meals, just because the government mandated health care coverage that is expensive.
Applebees knows this. That's why they are not going to pay it. So your grandson is screwed out of a decent job, thanks to bad government policy.