The upside of the Obamacare employer insurance mandate

[NJMaverick]

Quote:Papa John's CEO John Schnatter’s recent statement that the Affordable Care Act will force the pizza chain to raise prices came as good news to Nick Martin.

Martin, a part owner of Ian’s Pizza, a pizza shop with four locations in Wisconsin, said his business has offered full heath care coverage to its 50 full-time employees for years, making it all the more difficult to compete with national chains like Papa John's that pay workers low wages without health benefits.

"This may level the playing field for us,” Martin said of the Papa John's price hike. “If they have to pay for benefits, and that pushes their prices up closer to ours, it will justify what we’ve been paying for and what we’ve been fighting to do the past few years.” (Ian's knows a bit about fighting, having fed demonstrators free slices during last year's protests in Madison.)

Like many of the 60 percent of small businesses that pay employees health benefits, Ian's Pizza has struggled to compete with national chains that enter local markets and undercut existing prices. But Obamacare may give local businesses some breathing room as national chains lose the advantage they once wielded through not providing health insurance, according to Jonathan Gruber, a professor of economics at the Massachusetts Institute of Technology.

http://www.huffingtonpost.com/2012/11/15...33050.html

[Willinois]

Companies that cut back hours instead of offering health insurance will have a harder time keeping good employees. Employees will prefer to work for companies that offer more hours plus health insurance. Those companies that provide benefits will have their pick of the best employees in the service industry.

How will companies like Papa John's do when customers get sick of bad service? How about when they're left with a desperate workforce that hates their employer and their employees show it by showing up late, doing as little as possible, and stealing from the company? The market will punish short-sighted employers companies like Papa John's.