Somebody Has To Pay For Health Care Costs
As a self-employed person, I've paid directly every month for my own for decades -- although it's now become unaffordable thanks to how I'm now being forced to pay for everybody else's.
The turkey that is the "Affordable" Care Act is providing health care in the 21st century, when many people are freelancers, as if it's "work till you get a gold watch" 1952. Yes, healthcare is still tied to the workplace. When somebody leaves their job, which happens with frequency these days, they lose their health care and have to start over with the provider at the new business.
At one business forced to provide health care for their employees, the LA restaurant Republique, they're passing health care costs along to customers, with a 3% surcharge added on to every bill, reports LAist.
They quote a KPCC piece:
"I would be lying to you if I didn't tell you this has been an aspiration to solve this issue over the years, so you don't get ruined by rising health care costs," said Chait.Under Obamacare, businesses like Republique with more than 50 full-time employees have to offer affordable health care benefits or pay fines. (This week, that mandate was delayed again, to 2016)
Customer reaction, from the KPCC piece:
"I was very surprised," said a customer sitting nearby, sipping a latte. (She asked not to be identified) "Quite honestly, I had an immediate reaction that was not positive."On Yelp, online reviewers have been less kind, calling the surcharge "obnoxious" and "tacky."
"It is not MY responsibility to take care of YOUR employee's health care. That is YOUR job," wrote one reviewer, continuing, "I will not be returning because of the 3% charge."
Your reaction?
A company is perfectly within its rights to raise prices when costs increase. They can also choose to cut costs elsewhere, or accept a smaller profit, or just go out of business.
Their choice to TELL their customers that the increase is due to Obamacare is a choice intended to "promote discourse", i.e. get people pissed off.
They could have simply raised their prices 5% (the extra to cover the cost of new menus) and not mentioned it, and people would likely not even have noticed. Only utilities and companies overseen by the Government or other bodies have to use the "surcharge" dodge.
Vinnie Bartilucci at February 15, 2014 8:23 AM
Vinnie's right. "Promoting discourse" backfired on the restaurant. Also, its too late. Those of us who were talking, talking, talking about healthcare hell before Obamacare passed were ignored. Welcome to the future.
Amy Lyons at February 15, 2014 8:48 AM
"It is not MY responsibility to take care of YOUR employee's health care. That is YOUR job," This quote sadly shows how uneducated people are. Too many think that you must be rich if you own a business, because after all, whatever the price, it's pure profit.
Lisa at February 15, 2014 8:54 AM
Full honesty doesn't always work. What they are doing is like phone companies, airlines, hotels, electrical etc. have done for years. Quote one price then add in a litany of fees. As opposed to quoting one final price.
This is just passing the costs directly to the consumer. Restaurants have been doing that for a while too, with tip included, city surcharges etc.
Personally I prefer quoting the final price, but then a breakdown n the bill of where everything went.
Joe J at February 15, 2014 9:22 AM
"Surcharge mania", a going trend. The prices look lower when you
quote them pre-surcharges. Next, they'll add a surcharge for the
cost of washing dishes.
Ron at February 15, 2014 10:16 AM
Dating myself here but I remember when I did not have to ask a hotel how much it would cost me to park my car in their garage/parking lot.
Bob in Texas at February 15, 2014 10:59 AM
Probably a poor idea. You never want to point out to customers that you have raised prices if they haven't figured it out for themselves.
I sympathize with small businesses, A real inflation rate of over ten percent, makes it hard to figure out a product price point, that will make a profit at the current volume, while not driving away customers enraged by the higher prices.
Isab at February 15, 2014 11:02 AM
Heh, people finding out free healthcare is NOT free. Priceless.
Jamie Wilson at February 15, 2014 11:53 AM
Raise prices, sure go ahead.
But, as others have said here, don't quote or list one price then hit me with "surcharges."
That's dishonest. It is dishonest when the government does it (we're not raising taxes, just creating "fees."), it is dishonest when schools do it (nope, we're not raising "tuition" just the "fees" students must pay). It is simply dishonest. period.
Yea, I'll pay it and I'll leave a tip as always; but, I won't be back.
And, as it is pointed out in the article, what guarantee is there that 100% of that fee actually goes toward healthcare?
Charles at February 15, 2014 12:22 PM
Perfectly understandable reaction, if:
- You're convinced that all business make piles of profit, and the only reason they don't provide living wages and health benefits is because of greed (this appears to the be Administration's viewpoint, by the way)
- You've never seen a balance sheet, and don't know the difference between revenue and profit
- You can't do math, and feel numeracy is somehow an imposition
Given that, I'll agree with what others have said -- just raise the price without trying to justify it. Those who understand the reason won't need the explanation, and those who don't are probably unreachable anyway.
Old RPM Daddy (OldRPMDaddy at GMail dot com) at February 15, 2014 12:26 PM
I've seen these 30% surcharges too at the places I visit, though I am still not sure where I should drop the three dimes on my strippers.
jerry at February 15, 2014 1:02 PM
Vinnie nailed it. Everyone is going to have to raise prices to cover this ridiculous piece of garbage, it's just that most people will be smart enough not to come out and say it.
Daghain at February 15, 2014 4:44 PM
Or not be allowed to to state the facts.
Basically saying I'm not hiring full time employees because of the [un]ACA is no longer legal. So they are stating that to give full time employees insurance you have to pay an additional 3%.
Jim P. at February 15, 2014 8:31 PM
Bill Chait owns a number of places around LA, and he's cheap, frankly. He figures kitchen workers can file for OSHA rather than having him pay for insurance.
KateC at February 16, 2014 8:14 AM
In Allegheny County (Pittsburgh) the County Executive pushed through a tax on alcohol at restaurants and bars, ostensibly to provide much needed funding for public transportation. Then the money did not go to public transportation, which pissed off people even more, including very lefty-liberal friends of mine who owned a restaurant and would have taken the hit without protest if the money had been allocated as advertised. Local businesses called out the tax on bar and restaurant bills, which helped keep the issue in public discourse. When the guy ran for governor, he didn't win the county and lost the election. This tax was one of two reasons why.
Michelle at February 16, 2014 11:09 AM
So you won't be back? LOL.
You'll just be patronizing another business who hides the truth from you.
If that's what you want, stand over there with the people who bought the idea that "we have to pass this bill to see what's in it".
Meanwhile, I'll be at the restaurant that provides me value based on the bottom line, whether you're there or not. Some of them will have fired people because it costs more than they are worth, period, to pay the health care.
Pull up to the second window, please!
Radwaste at February 16, 2014 12:49 PM
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