If you have been to one of my presentations, or read my blog for long, you have heard about the wide ripple effect of Health Care Reform. Two of my predictions a year ago where that you would see a $1/hour increase in temporary employee hourly rates, and an increase in restaurant bills.
The penalty for an employer that does not provide insurance for eligible employees is $2000 a year, which is $167 a month, or about $1 an hour per employee. Someone has to pay for this.
Now Chris Peacock, Executive Editor of CNN Money, has tweeted a receipt from a restaurant in Florida that shows a $22.64 bill, with an “ACA surcharge” of $0.20. That’s about 1% of the bill. I am not sure how the math works out, or how they selected that number. We also don’t know if its 20 cents on every bill, or a percentage. However we do know two things:
1) The ripple effect of forcing employers to offer health insurance will cost all of us more money, and the CBO won’t be counting those dollars.
2) The restaurant didn’t have to do it yet, since the Employer Mandate is on hold.
Maybe they just decided to offer health insurance to all their employees and pay part of it (its a chain restaurant) prior to the mandate being delayed. Another side effect of the administrations handling of the law- constant delays of “requirements” end up costing employers money for no reason.
I wonder if the IRS will increase the deduction for meals and entertainment, to help all of us pay for this?