Costco Wholesale Corporation (COST), Starbucks Corporation (SBUX), Darden Restaurants, Inc. (DRI): 3 Companies Doing Right by Their Employees Ahead of Obamacare’s Implementation

Page 1 of 2

Chances are that you don’t have to look for very long to find articles or statistics that are critical of the health reform law signed into law by President Obama in 2010: the Patient Protection and Affordable Care Act. Here at The Motley Fool, we’ve addressed some of these criticisms head-on while also pointing out how the law could wind up benefiting millions of people while complementing parts of our existing health-care system. Regardless of how you feel, the reaction to the bill — also known as Obamacare — remains very mixed and uncertain.

Costco Wholesale Corporation (NASDAQ:COST)

What isn’t uncertain are the numerous big businesses that have been profiled in recent months for scaling back employees’ hours or flat-out cutting jobs in order to avoid having to provide health care insurance to their employees. Under the PPACA, business of 50 or more employees are required to provide health insurance for their employees, but not to necessarily kick in a subsidy to help that employee pay for their health insurance. However, if the cost of an employees’ insurance surpasses 9.5% of their income, the business can be fined $2,000 to $3,000 per employee.

Companies cutting corners… and hours
Rather than risk those penalties, businesses like Regal Entertainment, the largest operator of movie theaters in the United States, scaled back hours for thousands of employees to less than 30 per week (the level outlined by the PPACA as full-time), nullifying their chance of receiving employer-based health insurance as well as hurting them directly in their pocketbook.

As I outlined over the weekend, United Parcel Service, Inc. (NYSE:UPS) also made the rather unpopular move of announcing that it would not allow spouses for some 15,000 employees to be added to their health plans in 2014, affecting about 25% of its workforce. The move, plain as day, was made to help reduce costs by $60 million in lieu of Obamacare.

Some companies have been even more drastic with their approach to dealing with Obamacare. Medical device maker Stryker Corporation (NYSE:SYK) laid off 1,000 people, or 5% of its workforce, in order to save more than $100 million annually because of the medical device excise tax of 2.3% that it now has to pay.

Three corporate heroes
The good news is that there are some heroes mixed in with the corporate crowd — even some that have redeemed themselves — that are doing right by their existing employees and owning up to their responsibility to provide health insurance to full-, and in some cases, part-time employees.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

The 10 Biggest Outlet Malls in USA

The 5 Most Popular Rap Songs of All Time

The 10 Countries that Eat the Most Meat

The10 Most Expensive Countries to Fly To

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!