Why Burger King Doesn't Like Obamacare

A woman working the drive-thru window at a Burger King restaurant points at President Barack Obama's motorcade as it drives past after leaving Marine Corps Base Hawaii at Kaneohe Bay, Hawaii. Photograph by Saul Loeb/AFP/Getty Images
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President Obama’s health-care law will force businesses to buy insurance for their employees or get slapped with a fine. But one category of employers will be spared that expense: businesses with fewer than 50 workers. Many of the roughly 4.5 million businesses that employ fewer than 50 workers are familiar restaurant franchises: Burger King, McDonalds, Subway.

These companies use lots of part-time workers and are unlikely to pay them full health benefits, given the high costBloomberg Terminal of providing insurance. Many of these part-time workers are poor enough that the government is already subsidizing their health care through Medicaid. Obamacare expands that support: Medicaid will cover more people, and families earning up to 400 percent of the poverty line will get a lot of subsidies to help them buy insurance on state health exchanges.