The problem is a lot deeper than most are admitting here. Everyone is all upset that Papa Johns doesn't want to provide health care for its employees.
But why should they? Let me explain.
Health insurance in this country has evolved as an employee benefit. Why? because employees, by and large, are healthy people. They are well enough to
work. Insurance companies love to insure people through their work because that population is a healthy population to insure. It costs less.
Employees have grown to expect health insurance as a benefit of employment. They like it because it is tax free, so even if your employer is paying
$700 per month for your insurance, that's $700 tax free dollars you neither have to see, spend, or pay taxes on. This has grown tremendously over the
last few decades. When I first started working full time I made $930 per month. The health premium was $50 per month, which my employer paid, 1/18th
of my salary. Today the same job pays probably $4,000 per month, and the health premium is $700, more than 1/6th of the salary. Employers have been
absorbing the increases year after year and now everytime an employer says, "Say, we can't do this any more," the coddled employees scream bloddy
Ironically, this whole system has contributed to raising the cost. For moet of my working life I never ever saw a bill. I broke my arm (above the
elbow, clear through) which had to have cost thousands of dollars, and to this day I don't know how much it cost. So employees, not knowing, used
their medical benefits in a cavalier fashion. They'd go to the emergency room for a cut finger.which cost $1000, but they didn't care one way or
another. Today at least, most plans will send you an "Explanation of Benefits" so you, the empliyee, at least has a clue.That kind of use makes
premiums go up.
Now Obamacare has dictated that even if you work less than full time, your employer still MUST pay full health care benefits for you. There is a
threshhold for size of business, which Papa John's exceeds. And businesses are beginning to say, "No, I don't want to participate in such a draconian,
totalitarian system." so they are opting out. And people here, predictably, are saying the employer OWES the employee health benefits.
No, they don't. You should never have been obtaining health benefits through your employer in the first place. You should have been obtaining health
care through the open market, where you shopped for it and knew what you were buying, just as you do auto insurance. Instead you opt out of
responsibility by letting your employee carry you. I know, that's the system, but that's what is wrong with the system.
This whole issue has broad implications in the small business sector, which Papa Johns is not. Businesses are choosing not to expand because expansion
would put them over the employee threshhold for proving full coverage, resulting in no new jobs being created. THAT'S what's happening here and it is
a good reason why the stock market dropped several hundred points after Obama's re-election.
And one more thing. The issue is about the FRANCHISEES, not the Papa John Corpoation. You people pointing out Papa John's profit last year are missing
the point completely. Franchisees operate as independent restaurants. They are small businesses. THESE are the people affected.
11/13/2012 by schuyler because: (no reason given)