Tags: Healthcare Reform | fines | hours | cut | affordable | health | care

Companies Could Pay Fines, Cut Hours to Avoid Obamacare

Tuesday, 19 Feb 2013 12:56 PM

By Sandy Fitzgerald

Retailers who employ low-wage workers are considering cutting back their hours or paying fines rather than provide insurance through the rules set up by Obamacare.

David Dillon, CEO of the Kroger supermarket company, told The Financial Times that some companies might decide to pay a fine rather than insurance premiums because it would cost less.

Meanwhile, Dunkin' Brands CEO Nigel Travis said the doughnut chain is lobbying to change the definition under Obamacare of full-time work from 30 hours a week to 40, a move that would save companies money because they would end up insuring fewer workers.

Dick Morris: Protect Against ObamaCare with This Book

In addition, some fast-food chains are considering slashing workers' hours so that fewer would qualify for health insurance, while others are keeping their numbers of employees below 50 to avoid the insurance costs.

Dillon said Kroger will keep covering all its full-time workers, but said some parts of the Obamacare law won't work because the penalties may be less costly to companies than insuring their employees.

“If you look through the economics of the penalty the companies pay versus the cost to provide coverage, the penalty’s too low, or the cost of coverage is too high, or the combination is wrong,” he said. “If [policy makers] get those things too far out of balance, everybody will have to reconsider their position on that point, including us. But we’re going to wait and see how that all develops.”

Under Obamacare, companies with more than 50 workers must pay a fine of $2,000 per worker if they don't provide insurance for full-time employees. The Kaiser Family Foundation, a nonpartisan policy group, says insurance costs companies an average of $4,664 per year for single coverage and $11,429 for families.

© 2015 Newsmax. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Rep. Ed Royce: Keep Gitmo Open Until War With Taliban Ends

Saturday, 31 Jan 2015 17:20 PM

The Guantanamo Bay prison should remain open until the struggle with the Taliban is over, Rep. Ed Royce, who chairs the  . . .

Suspected US Drone Strike Kills al-Qaida Militants in Yemen

Saturday, 31 Jan 2015 16:45 PM

A suspected U.S. drone strike on a car in Yemen killed three men believed to be al Qaida militants on Saturday and possi . . .

Rand Paul: Jeb Bush a 'Hypocrite' Over Stance on Pot

Saturday, 31 Jan 2015 15:46 PM

Sen. Rand Paul was quick to call Jeb Bush a hypocrite following an unflattering profile in The Boston Globe that paints  . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved