Despite significant debate and concern among by the majority of
Americans, Congress recently passed a health reform bill on a
straight party-line vote (possibly cementing it's 11% approval
rating). While portions of the bill are not without merit,
noble intentions often have very real consequences. Complying
with the 2,074 pages of government dictates will be time consuming
and financially taxing (figuratively and literally). It will be
months before it is all understood, and years before it is all
implemented.
Much attention has been paid to the projected cost of the bill and the special backroom deals included in the
legislation, and there are many key provisions which will directly
affect the restaurant industry:
Mandatory Posting of Calorie
Content
The bill requires chain restaurants with more than 20 locations
to display a "succinct statement concerning suggested daily caloric
intake… posted prominently on the menu and designed to enable the
public to understand, in the context of a total daily diet, the
significance of the caloric information that is provided on the
menu." This provision has been applauded by the National Restaurant Association who believe
that it is good for consumers and restaurateurs.
Penalties for Companies Who Don't Offer Employee
Insurance
Another provision of the bill requires some companies to pay a
penalty of $2,000 per employee if they do not offer health care
coverage. The number of part-time workers also comes into
play when companies determine whether this must comply with this
mandate. In addition, companies will be fined if they make
their employees pay for more than 9.5% of their incomes towards
health care coverage and will face the threat of audit if they are
not in compliance. For industries that rely on larger numbers
of low-wage, part-time employees, this provision could prove
exceptionally onerous.
Fortunately, many of these changes will be phased in over the
next several years. For a full timeline of the bill's
provision, click here. According to CFO
Magazine:
"There's the misconception that
everything is going to happen at once, and that's not the case,"
says Chantel Sheaks, head of the government affairs group for Buck
Consultants.
Still, "there is nothing in this
bill that is going to hold down health-care costs in the short
term, and there are some elements that could cause costs to go up,"
says James A. Klein, president of the American Benefits Council
(ABC).
How is your company responding?