BOSTON —Massachusetts restaurateurs say they are feeling ill over their governor’s recent proposal to increase employer contributions to fund the skyrocketing costs associated with the state’s year-old landmark plan for universal health care.
Gov. Deval Patrick, in a July 31 proposal sent to the state House, asked to modify the plan so that employers with 10 or more full-time workers be required to have at least 25 percent of their full-time employees enrolled in company insurance plans and offer to pay at least 33 percent of the premium costs. If they do not meet the two tests, business owners would then be responsible for paying a $295 assessment fee for each employee, including part-time workers. The program currently calls for employers to meet only one of the two tests. —Massachusetts restaurateurs say they are feeling ill over their governor’s recent proposal to increase employer contributions to fund the skyrocketing costs associated with the state’s year-old landmark plan for universal health care.
The plan, which was put into place by former Gov. Mitt Romney and went into effect in July 2007, is looked to as the model by other states. Similar legislation is being considered in Washington, Connecticut, California, New Jersey, Wisconsin, New Mexico and Maryland. But Massachusetts operators say the plan is increasing their financial burdens at a time when many already are struggling to stay afloat given the slowed economy. —Massachusetts restaurateurs say they are feeling ill over their governor’s recent proposal to increase employer contributions to fund the skyrocketing costs associated with the state’s year-old landmark plan for universal health care.
“We’re looking at double-digit [labor cost] increases,” said Mark Beaton, general manager and partner of The Charlie Horse restaurant in Kingston, Mass. “We’ve had to change our coverage in order to stay affordable. It’s not a cheap Chevy, but it’s not the Buick we used to have. All of the deductibles and co-pays went up. Our deductible is now $1,000. But that’s the collateral damage as far as universal coverage is concerned. The co-pays keep going up.” —Massachusetts restaurateurs say they are feeling ill over their governor’s recent proposal to increase employer contributions to fund the skyrocketing costs associated with the state’s year-old landmark plan for universal health care.
Although the House rejected Patrick’s proposal, state restaurant industry officials say the governor still could get the measure passed by a government regulatory committee. —Massachusetts restaurateurs say they are feeling ill over their governor’s recent proposal to increase employer contributions to fund the skyrocketing costs associated with the state’s year-old landmark plan for universal health care.
“There is fear because the governor doesn’t need to go to the legislature to implement the change,” said Janine Harrod, director of government affairs for the Massachusetts Restaurant Association. “So is it his intention to go through a regulatory agency, or is he going to back off? That’s the $64,000 question since he did not need to go to the legislature in the first place. It’s really just a wait-and-see thing right now.” —Massachusetts restaurateurs say they are feeling ill over their governor’s recent proposal to increase employer contributions to fund the skyrocketing costs associated with the state’s year-old landmark plan for universal health care.
Harrod added that if the new requirements are adopted the extra labor costs could be financially crippling to many restaurateurs. —Massachusetts restaurateurs say they are feeling ill over their governor’s recent proposal to increase employer contributions to fund the skyrocketing costs associated with the state’s year-old landmark plan for universal health care.
“If they were to make this change so that employers have to comply with both tests, many more businesses would have to pay the assessment for every single employee, even part-time [workers],” she said. “That’s the major rub for the restaurant industry. It’s much different than in more traditional businesses, where everyone fits in a lot easier to get 25 percent [enrolled] on insurance. If penalized for every single employee, those assessments could end up costing thousands of dollars.” —Massachusetts restaurateurs say they are feeling ill over their governor’s recent proposal to increase employer contributions to fund the skyrocketing costs associated with the state’s year-old landmark plan for universal health care.
Published reports indicate that Patrick’s reason for tightening the requirements is his need to generate approximately $100 million in new revenue to pay for increased costs associated with subsidizing health care for the uninsured. Those costs could reach more than $869 million in fiscal 2009, up from $647 million in fiscal 2008, according to a recent report in Business Insurance magazine. Currently, 93 percent of Massachusetts residents are insured under the state’s universal-health-care plan. —Massachusetts restaurateurs say they are feeling ill over their governor’s recent proposal to increase employer contributions to fund the skyrocketing costs associated with the state’s year-old landmark plan for universal health care.
Though most restaurateurs agree that the plan is a good one in theory, they say the extra cost negatively affects their bottom lines. —Massachusetts restaurateurs say they are feeling ill over their governor’s recent proposal to increase employer contributions to fund the skyrocketing costs associated with the state’s year-old landmark plan for universal health care.
“It’s such a tough time in any business, not just this one,” said Kathy Sidell Trustman, owner-operator of the Met Bar and Grill in Natick, Mass. “Although I certainly believe in health care coverage for full-time employees, it has to be affordable to small-business owners that don’t have huge profit margins and who work very hard at making sure their companies are profitable. It’s all something we want to do, but right now in an environment where food prices and labor have never been higher, you really have to watch how well you control your costs.” —Massachusetts restaurateurs say they are feeling ill over their governor’s recent proposal to increase employer contributions to fund the skyrocketing costs associated with the state’s year-old landmark plan for universal health care.
Trustman said paying 33 percent of the employee’s insurance premium is particularly difficult. —Massachusetts restaurateurs say they are feeling ill over their governor’s recent proposal to increase employer contributions to fund the skyrocketing costs associated with the state’s year-old landmark plan for universal health care.
“It is a bit of a conundrum,” she said. “Where is the line where you make some profit? There has to be some kind of compromise for the industry. I don’t know how much [Gov. Patrick] has been in touch with [operators], but he has to know the margins are small and that it’s getting to be a tougher and tougher equation.” —Massachusetts restaurateurs say they are feeling ill over their governor’s recent proposal to increase employer contributions to fund the skyrocketing costs associated with the state’s year-old landmark plan for universal health care.
Shun Chen, operator of the Asian C restaurant in Hingham, Mass., said that because insurance premiums are so high, many of his employees have opted to cut their hours so they can become eligible for state assistance. —Massachusetts restaurateurs say they are feeling ill over their governor’s recent proposal to increase employer contributions to fund the skyrocketing costs associated with the state’s year-old landmark plan for universal health care.
“We offer health insurance to all of our full-time employees,” he said. “The cost is $400 per person per month; we pay $200. But some people have decided to work less hours so they can qualify for the [state-assisted] health insurance. People with low incomes can purchase their insurance from the state. Financially, it’s cheaper.” —Massachusetts restaurateurs say they are feeling ill over their governor’s recent proposal to increase employer contributions to fund the skyrocketing costs associated with the state’s year-old landmark plan for universal health care.
Chen said that because of universal health care, labor costs have risen $15,000 this year at Asian C. —Massachusetts restaurateurs say they are feeling ill over their governor’s recent proposal to increase employer contributions to fund the skyrocketing costs associated with the state’s year-old landmark plan for universal health care.
“It’s so hard,” he said. “The economy isn’t stable, and we can’t raise prices because that won’t help business at all. People just don’t want to spend that much in restaurants anymore.” —Massachusetts restaurateurs say they are feeling ill over their governor’s recent proposal to increase employer contributions to fund the skyrocketing costs associated with the state’s year-old landmark plan for universal health care.