Health Care and Pizza Prices

Ezra Klein has a piece looking at how the Affordable Care Act will affect businesses with more than 50 employees, which is basically: They don’t need to offer their employees health care, but if their employees apply for federal subsidies and buy coverage themselves, the employer must pay a small fraction of the cost (“a penalty equal to about 1/8th the cost of the average employer-provided health-insurance plan“).

Papa John’s isn’t happy about this because it’ll raise the cost of doing business. They’ve warned that they’ll have to raise the price of their pizzas by “11 to 14 cents per pie.” Which, I think people would be willing to pay! Or at least, I’d be willing to pay that knowing that the extra 14 cents is helping to give those pie makers some benefits.

Photo: mrsdkrebs



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