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New Law Prompts Restaurants To Consider Laying Off Employees Or Dropping Their Health Coverage, Some Of “Which Began Offering Health Insurance To Workers In 1924”

“The White Castle Hamburger Chain Fears That A Health Insurance Reform Law Adopted Earlier This Year Will Put Its Profits On A Downward Slide.” (“Ohio Hamburger Chain Says Insurance Reform Will Bite Into Profits,” The [Cleveland] Plain Dealer, 7/4/2010)

“White Castle, Which Began Offering Health Insurance To Workers In 1924, Is Also Examining Whether It Would Make Financial Sense For The Company To Eliminate Health Insurance Coverage Altogether And Have All Its Employees Buy Insurance On The Federal Exchange, Says Richardson.” (“Ohio Hamburger Chain Says Insurance Reform Will Bite Into Profits,” The [Cleveland] Plain Dealer, 7/4/2010)

  • “White Castle recognizes it won’t continue paying health insurance bills for workers who buy insurance on the federal exchange, but Richardson says the company predicts its insurance costs would still rise because its healthiest young employees, who make the least money, would be most likely to transfer to the federal program. An exodus of healthy workers from the company’s insurance plan would drive up costs for those who remain, the company forecasts.” (“Ohio Hamburger Chain Says Insurance Reform Will Bite Into Profits,” The [Cleveland] Plain Dealer, 7/4/2010)

“[National Council Of Chain Restaurants] Vice President Scott Vinson Says The Entire Restaurant Industry Will Have Trouble Dealing With Costs The Bill Imposes In 2014, including a $2,000-per-worker penalty that companies with more than 50 employees must pay if their workers end up purchasing federally subsidized insurance rather than getting insurance from their employers.” (“Ohio Hamburger Chain Says Insurance Reform Will Bite Into Profits,” The [Cleveland] Plain Dealer, 7/4/2010)

“George Ebinger Of New Jersey, Who Owns Several International House Of Pancakes Restaurants, Says The Penalties For Not Insuring His 140 Workers Will Cost Roughly Half As Much As Insuring Them. He Figures He Will Have To Raise Prices And Possibly Lay Off Workers To Come Up With The $220,000 He Anticipates The Penalties Will Cost.” (“Ohio Hamburger Chain Says Insurance Reform Will Bite Into Profits,” The [Cleveland] Plain Dealer, 7/4/2010)


About Tom White

Tom is a US Navy Veteran, owns an Insurance Agency and is currently an IT Manager for a Virginia Distributor. He has been published in American Thinker, currently writes for the Richmond Examiner as well as Virginia Right! Blog. Tom lives in Hanover County, Va and is involved in politics at every level and is a Recovering Republican who has finally had enough of the War on Conservatives in progress with the Leadership of the GOP on a National Level.


  1. G Katz says:

    Yes, people may have to pay more for their unhealthy bags of burgers and plates of pancakes, but won’t it be nice that the people preparing and serving them actually have health care? Wouldn’t it be nice if every hard working American had health care? Seems like the Public Option wasn’t such a bad idea after all!

    • Tom White says:

      Perhaps you don’t get it. They have health care now. They will most likely be uninsured due to the unaffordable of Health Care due to Obama.

      But it seems that you don’t really have a problem with the loss of health care for people that work in jobs you don’t approve of.

      And you are unable to see past your Utopian view through your rose colored glasses that our nation cannot afford this ruinous plan, which is intended to do exactly what it is doing – destroy our health care system so the government can swoop in to the rescue with universal health care, complete with rationing and huge taxes on the working people to pay for the moochers Obama creates.

      Health Care is not a right. It is a benefit. What’s next? “Free” cars – oh, already been done with the “cash for clunkers” that raised the deficit – and debt. How about “free” houses – oh, Barney Frank and Chris Dodd are already doing that. And it crashed the economy.

      It is time people like you grow up and get real. If you want something in this world, you need to earn it. Your way does not do anyone any good – except Republicans in November.

    • Mark says:

      Your dumb they all had insurance until the law makes it too expensive. Ever read?

  2. G Katz says:

    If you think I need to grow up because I believe that all hard working Americans deserve access to healthcare regardless of their station in life, then YOU don’t get it. It is NOT okay ethically or morally to take advantage of low wage earners by denying them health care coverage and providing no viable option. You can try to defend your position as much as you’d like, but your argument will always end up back at its roots of corporate greed and class warfare.

  3. Tom White says:

    Sorry, Katz. But you are absolutely wrong. Corporations are under absolutely NO obligation morally or ethically to provide health care to workers. Period. It has nothing to do with corporate greed or class warfare. You are absolutely brainwashed to believe otherwise.

    Employers provide health care and other benefits – like vacations – for two reasons. To help draw and retain workers, and to benefit themselves by having healthy, more productive workers.

    So company provided health care is provided to benefit the company. Like paying wages. You need to draw and keep the best workers, and protect your investment. There is no ethical obligation here. Simply business.

    Some employers, like fast food and supermarkets add health care as a benefit, not because they must to draw and keep employees, because the training investment is minimal. They could train someone to take orders and flip burgers, or put cans on shelves in a couple of days. These places (White Castle) provide benefits to try to be decent places to work. Now the government comes in and begins forcing mandatory rules that have placed the freely provided health care in a price range that the corporations cannot provide it without losing money.

    And uninformed people such as yourself somehow believe it is mandatory that companies pay for health care and it is greed if they do not.

    Well, what is happening is businesses are not going to allow the government to screw them because freeloaders like you do not understand the free market. It is not greed, it is simply business. So, more and more businesses will drop health insurance because the government has become greedy.

    Years ago, I had a free company car. The government got greedy and began taxing personal use as income, so I lost my benefit. Government greed.

    I own a business and now have only part time employees. I refuse to hire full time because I will not pay government mandated health care. It takes me a long time to train an employee, but when I run an ad on Craigs list – also free – thanks to Obama there are millions of people willing to work for pay only.

    No, this is a trend that will continue to push jobs to part time and a total loss of benefits if the businesses are to survive.

    Perhaps it will move to the rationed universal health care you want. I am sure you have never been forced to suffer in the British health care system (I have). You have absolutely NO idea what will happen, do you?

    Consider this, why do we need retirement accounts when we have Social Security? Greed? Or is is a simple fact that your beloved government mandated retirement plan is not adequate to provide even the basic needs? Not to mention it it broke.

    Why do we need Medicare supplemental plans? Because the government provided option is inadequate. People living on Social Security cannot afford medicines and the high co-pays and deductibles. And this system is broke and Obama is taking $500 billion more out of it.

    Well, how about government provided unemployment insurance? That is a real bonus if you get laid off, right? I pay tons of money into unemployment insurance and I DON’T EVEN HAVE ONE EMPLOYEE ELIGIBLE SHOULD I CAN THEM. On top of that, even if I did, they would only get a tiny fraction of their pay. Insurance is supposed to indemnify – make whole. Unemployment insurance does not even come close.

    And which insurance would you rather have pay for your damaged home, Homeowners or government run flood insurance? Hint: pray for fire – not flood.

    There is not one single government program that does not cost taxpayers FAR MORE than they get out of it.

    Insurance companies actually are far more efficient than government at paying claims.

    Medicare takes in tax money, pays a massive government bureaucracy out of that money, and pays claims with the remainder. And gets more tax money if they go broke. So the only income to Medicare is taxes.

    Insurance companies collect premiums, invest a portion in safe, short term investments, and almost ALL pay out more in claims than they collect in premiums. This is called an underwriting loss. (AIG is the exception – and they are still in trouble.) So, an insurance company actually pays out more in claims than they collect, pays their employees along with BILLIONS in taxes, AND STILL MAKES A SMALL PROFIT. Just over 2% – about the same as Tupperware.

    And people like you call the profit CORPORATE GREED? What do you think happens with the profit? It is invested in technology, training, programs to make people safer and healthier, and some is paid out as dividends. And what do the people that receive the dividends do with this GREED money? They invest it in other business ventures, which creates more jobs, less welfare and unemployment, and MORE TAXES for the government.

    You have blinders on, my friend. And you have absolutely no clue why the economy continues to struggle, do you? What you call corporate greed is the fuel that keeps the economy self sustaining. The fuel that keeps government from injecting borrowed money into a system destined to failure. Obama’s policies are designed to take the self sustaining fuel source out of the economy and replace it with government mandates and taxes.

    GOVERNMENT GREED is the problem. Corporate “greed” is the solution.

    But, of course, your view is much more simplistic. The economy is complex, and the government counts on this complexity to draw in people that are unable to understand how these things work. They feed you a line about “corporate” greed, you demand no explanation, only an emotional good feeling that you are smacking down “rich” people. And that makes you feel good. And as long as you “feel good”, the truth is irrelevant.

    In my view, you are either unable to comprehend the self sustaining mechanism of economics, or you are unwilling to think for yourself. If you are unable to comprehend what I just told you, I apologize for speaking of things beyond your grasp.

    On the other hand, if your mental acuity is sufficient to understand this complex machine we call the economy, then you are either a free market proponent now, or a proponent of larger government that will totally stifle the economy to the point it will never return. If that is the case, then your true goal is to have the government control every aspect of everyone’s lives and take our freedoms.

  4. Medit says:

    Wow! Great insight.


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Tom White Says:

Nothing is more conservative than a republican wanting to get their majority back. And nothing is more liberal than a republican WITH a majority.

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