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Showing posts with label Obama care. Show all posts
Showing posts with label Obama care. Show all posts

Tuesday, April 1, 2014

High-end restaurant adds Obamacare surcharge to every order

Story originally appeared on ajc.com.


At Republique restaurant in Los Angeles, you can order trendy sounding dishes such as Butternut Squash Agnolotti and Duck Liver Mousse with Pickled Asian Pear.

Diners at the high-end eatery, about 6 miles west of downtown Los Angeles, likely expect to pay a bit more for the funky fare, but what's been surprising many customers is a 3 percent surcharge added to every bill to cover employee health care costs under the Health Care Act, also known as Obamacare.

Social media and restaurant review sites have been abuzz with the story since it was reported by Los Angeles Times columnist Steve Lopez on Tuesday.

The Times talked to Republique co-owners Bill Chait and Walter Manzke, who is also the chef. They said they knew the charge would drive some customers away, but thought it was necessary to keep all 80 employees at full time.

Under the Affordable Care Act, companies with 50 or more full-time employees will have to provide health insurance to their workers. The owners opted for the surcharge instead of cutting back staff or creating several part-time jobs to get around the law.

According to TV station KTLA, many people voiced complaints about the policy on Yelp.

“We spent $150 for two of us and you want me to pay an extra 3 percent. Because I can afford to eat here then I should be able to afford that fee? Absurd,” one customer wrote.

The restaurant issued a statement to KTLA regarding the surcharge.

“It directly benefits all the staff, kitchen and front of the house. Moreover, it enables us to make all of our staff full time and to provide them with insurance instead of excluding them as they would be if they were part-time employees.”

Tuesday, December 4, 2012

Some Small Businesses in Fear after Election

story first appeared in The Wall Street Journal

The results of the presidential election dampened the spirits of many small-business owners who now worry that forthcoming federal policies, including potentially higher taxes and health-care reform, could stunt growth and hiring at their firms.

A November survey from Vistage International Inc. and The Wall Street Journal found a significant drop in optimism compared with the months leading up to the election, as respondents anticipated a worsening economy in 2013.

Julie Sanderson, owner of Vail Condo Rentals, a small business operating with a tight budget, says her main concern is health insurance. She believes that with rates already "sky high," she will be unable to keep her employees if her business costs go up.

The survey's overall confidence index, based on responses of 740 small-business owners, fell to 83.9 from 95.3 in October. That is the lowest in the survey's six-month history.

Specifically, the survey's index of expected economic conditions fell to 77 from 105, a result of 43% of the respondents anticipating worse U.S. conditions in the next 12 months. That is nearly twice as many as October's 23%. The index of business profits also fell to 122 from 135 as only 43% of owners anticipate higher profits in the coming year, down from 50% last month.

Some policies that Mitt Romney had proposed during his campaign were appealing to small-business owners, such as keeping taxes low and repealing President Barack Obama's health-care reform.

Anticipating higher taxes under President Obama, more business owners are preparing cutbacks to their payroll and other overhead expenses. November's employment index fell to 124 from 141 as 16% of owners are planning to reduce staff in the next year, up from 9% in October. And the fixed-investment index fell to 107 from 123, in part because 23% of owners plan to decrease their investment expenditures, up from 14% last month.

Terry Racciato, one business owner, said she was despondent in the days following the election. Ms. Racciato is president of Together We Grow Inc., a pediatric health day-care business for special-needs children in San Diego that she started in 1990.

The top issue for Ms. Racciato is rising health-care costs. She provides benefits to her 52 full-time employees and personally gets coverage through her company's plan. Because she and her husband are now over the age of 60, their deductible and copayment for medical care recently doubled to $37,000 annually. That is money she could have used to bring on another employee, she said.

What's deepening her worry, she said, is that if she opts to drop health benefits to save money, she will, in 2014, have to pay a penalty—a provision that kicks in for companies with 50 or more full-time employees under the federal health-care reform.

She reiterates the fears of Mrs. Sanderson, who fears both her Vail business and her Deer Valley Condo Rentals will be in jeopardy because they operate at low costs. She says keeping vacation rental costs low for her customers is her greatest value, but isn't sure how she'll be able to keep up if her health care costs increase.

Ed Trevis, president and chief executive of Corvalent Corp., an industrial-computer manufacturer in Cedar Park, Texas, says the uncertainty about potential tax hikes is hurting his 50-person firm because he can't plan for the future.

A tax increase on higher-income earners may come as part of an agreement to avoid the so-called fiscal cliff—a series of across-the-board tax hikes and government-spending cuts that will kick in at the beginning of 2013. But Congress has yet to come to a resolution and Mr. Trevis is nervous that any agreement could come down to the last minute and be only temporary.

Global economic conditions are most troubling to William P. Southard, founder and president of DST Controls in Benicia, Calif. Mr. Southard and his 38 employees set up and service computer systems and monitoring panels on five continents.  

Thursday, June 28, 2012

Opinions are Anticipated in Court Ruling

Story first appeared in USA Today.

Tea Party and union members, liberals and conservatives, Republicans and Democrats have two things in common as the Supreme Court prepares to announce its verdict on President Obama's health care law Thursday.

They have no clue what the court will decide. And they will have plenty to say outside the court immediately after — in high praise or denunciation.

Much like the court's three days of oral arguments on the Affordable Care Act in late March, Thursday will feature a crowded, hushed courtroom and a cacophonous series of sidewalk demonstrations.

For some lawyers and lawmakers who have fought the health care battle for years — and in some cases, decades — it's an opportunity to witness history inside the marble courthouse.

There's an atmosphere of intense, quiet excitement. People are sitting in that room knowing history is about to be made.

The executive director of the health consumer group Families USA, has been there the past three days the court delivered opinions, just in case health care was among them. Thursday, he plans to arrive several hours early to make sure he picks up every nuance from the nine justices.

His allies will be outside as well, to react before dozens of TV cameras. Within minutes, the group plans to send its analysis and recommendations for further action to more than 100,000 supporters. It has prepared eight news releases based on potential court rulings.

On the other side of the debate, Tea Party demonstrators also will be out in force. They plan a "flash rally" in front of the court, thanks to "Minutemen" coming from hours away.

Within 36 hours, the Tea Party Patriots plan a teleconference for their members with key opponents of the law.

Members of Congress will be inside and outside. The House Speaker will dispatch two members of his leadership team. The Speaker has vowed to seek repeal of any portions of the law left standing by the court.

Liberal Democrats, anticipating that the court's conservative majority may strike at least part of the law, plan to march from the Capitol to the court with signs urging "Medicare for all," a type of government-run health care. The option of Drug Savings Cards are also a hot topic.

Some of the most prominent advocates involved with the case won't attend — they'll be busy reading and responding.

A Georgetown University law professor and plaintiff in the case on behalf of the National Federation of Independent Business, will be reading the justices' opinions, writing on legal blog sites, doing radio commentary and fielding a steady stream of media calls.


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