Wednesday, July 07, 2010

White Castle Has Offered Health Insurance To Its Workers Since 1924, But Obamacare May End That


White Castle has been offering health insurance to its workers in 1924, but Obamacare "will make it hard for the company to maintain its 421 restaurants, let alone create new jobs," says company spokesman Jamie Richardson in this Cleveland Plain Dealer article.

"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.

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. "The irony is that in the name of expanding health care coverage, the administration is making it harder than ever for unskilled workers to get started in the workforce," Boehner said in a missive on White Castle's plight.

White Castle is also examining whether it would make financial sense for the company to eliminate health insurance coverage altogether and have all its employees buy insurance on the federal exchange, says Richardson."

HT: Steve Bartin

19 Comments:

At 7/07/2010 9:49 PM, Blogger Colin said...

Mildly ironic that Kal Penn made his name in that movie "Harold and Kuman go to White Castle" and then went on to work for the Obama administration.

 
At 7/07/2010 11:13 PM, Blogger Bill said...

But wasnt it the Democrats' goal with the health care "reform" to drive more people off the private insurance rolls and into the arms of government "healthcare" thereby setting the stage for socialized medicine?

Dont be fooled. This is not an unintended consequence. It is an intended consequence. These moronic socialists are base and dishonest and will engage in any slight of hand to get to their ultimate goal.

 
At 7/08/2010 1:14 AM, Blogger Don Culo said...

^^^^^^^^^^^^
The country was so much better off just a couple of years ago under George Bush and a Republican controlled congress. We all had high paying jobs with health insurance , now we are unemployed without health insurance.

 
At 7/08/2010 3:19 AM, Blogger rufus said...

As one who retired from selling group health policies I double-dog dare you to post the list of benefits, and limitations on that White Castle "Health Insurance Policy."

 
At 7/08/2010 7:00 AM, Anonymous geoih said...

Quote from Don Culo: "The country was so much better off just a couple of years ago under George Bush and a Republican controlled congress. We all had high paying jobs with health insurance , now we are unemployed without health insurance."

I think this falls under the category of cutting off your nose to spite your face.

 
At 7/08/2010 7:05 AM, Anonymous geoih said...

Quote from rufus: "As one who retired from selling group health policies I double-dog dare you to post the list of benefits, and limitations on that White Castle "Health Insurance Policy." "

Oh no, the benefits paid to employees of a private company might not meet the 'acceptable standards' of the country's busy bodies whom wish to pass judgment on all aspects of human existence. Maybe you should buy them health insurance with your money.

 
At 7/08/2010 8:55 AM, Anonymous Anonymous said...

If the company is paying 70% of the premium, and they only face a penalty if the employee's share is more than 9.5% of income, then 30% of the premium must be more than 9.5% of income. The premiums must be at least 31% of an employee's income. What's up with that?

 
At 7/08/2010 9:19 AM, Anonymous Anonymous said...

Internal White House documents reveal that 51% of employers may have to relinquish their current health care coverage by 2013 due to ObamaCare. That numbers soars to 66% for small-business employers.

The documents — product of a joint project of the Labor Department, the Health and Human Services Department and the IRS — examine the effects new regulations would have on existing, or “grandfathered,” employer-based health care plans.

Draft copies of the documents were reportedly leaked to House Republicans earlier in the week. Rep. Bill Posey, R-Fla., posted them on his Web site Friday afternoon. (View the full report here.)

IBD

 
At 7/08/2010 9:48 AM, Blogger Bill said...

Don Culo: "The country was so much better off just a couple of years ago under George Bush and a Republican controlled congress. We all had high paying jobs with health insurance , now we are unemployed without health insurance."

What nonresponsive nonsense. No society has ever had all of its citizens in "high paying jobs with health insurance". Socialism instead makes everyone equally poor (except for the ruling elite, of course) not everyone equally wealthy. Do you recall the 20th century?

Oh and yes my business was far better when we had a Republican Congress and a Republican President. I now have one less employee to compensate for the reduction in economic activity - one of those people Obama is supposedly helping. Thanks for your concern though.

 
At 7/08/2010 10:38 AM, Blogger juandos said...

"I double-dog dare you to post the list of benefits, and limitations on that White Castle "Health Insurance Policy.""...

Well rufus are you afraid of contacting White Castle and ask them yourself what those health insurance packages contain?

 
At 7/08/2010 11:03 AM, Blogger bix1951 said...

Is there a term to describe laws that require people to have a certain standard of living but end up causing misery?
Like zoning and building codes that actually cause higher rent and homelessness and in this case mandating health care that communities cannot afford?

 
At 7/08/2010 2:20 PM, Anonymous Eric H said...

Tyranny? Or as Thomas Jefferson more politely put it: Profusion and Servitude.

 
At 7/08/2010 5:20 PM, Anonymous Craig said...

The premiums must be at least 31% of an employee's income. What's up with that?

Um, let's think about that. How about insurance is expensive and burger-flippers don't make a lot of money?

Yeah. I think that's it.

 
At 7/08/2010 8:33 PM, Anonymous steve said...

If Healthcare is soooo expensive, instead of ObamaCare, why didn't we just raise the minimum wage, or have say guaranteed Federal Annual salaries of $150,000 per individual and $350,000 for couples, that way everyone could health insurance.

 
At 7/08/2010 8:35 PM, Anonymous Anonymous said...

Don Culo: "The country was so much better off just a couple of years ago under George Bush and a Republican controlled congress. We all had high paying jobs with health insurance , now we are unemployed without health insurance."

Who is "WE ALL...?" I have been unable to find a full time job and have had NO health insurance since the Bush Administration. I can only find part time jobs that do not pay health benefits. I am hoping Obama's policy will allow me access to health insurance while working part-time jobs...or help me find a full time job. Just because YOU have what you need, doesn't mean the rest of the country does.

 
At 7/09/2010 10:38 AM, Anonymous Anonymous said...

Um, let's think about that. How about insurance is expensive and burger-flippers don't make a lot of money?

Yeah. I think that's it.


Stupid burger flippers. If you want affordable health insurance, you should try to make more money!

 
At 7/09/2010 5:53 PM, Blogger rbblum said...

All too often, the real conversation lacks pure honesty of the underlying agenda: the ideology of progressive Republicans and socialist Democrats being played against 'the people'.

 
At 7/09/2010 7:16 PM, Blogger sethstorm said...


Bill said...

I now have one less employee to compensate for the reduction in economic activity - one of those people Obama is supposedly helping.

Hopefully that person's doing better - by having a better job - in light of your attempt to spite them.

You want to spite Obama, take it to Obama, and have all the damage solely fall on Obama. Not go power-trip on other private citizens.

 
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