“Free” Healthcare is not Free. Somebody Must Pay For It.

Twitter and various news outlets have been going crazy in recent days as major companies have come out to discuss the kinds of cuts that will be needed in order to pay for Obamacare mandates.

New York Applebee’s CEO Zane Tankel recently came out to discuss his inability to pull money out of thin air to pay for the extra costs of Obamacare for employees.  In a recent interview with FOX Business, Tankel explained business 101 by claiming that these extra costs can only be covered by one of three ways. Either prices must be raised, efficiencies must be increased or overhead must be lowered.

With this economy, Tankel explained that it is infeasible to raise prices and that efficiencies are where they should be. So, costs must be cut from overhead to make the company viable. It’s simple stuff, really.

Tankel stated,

“We’ve calculated it will [cost] some millions of dollars across our system. So what does that say — that says we won’t build more restaurants. We won’t hire more people.”

Tankel is not the only one facing these tough decisions. John Schnatter, founder of Papa John’s Pizza, has made claims that he, too, will have to review the company’s ability to purchase health insurance for everybody. By his estimation, many employees will have to be backed down to part-time to avoid the punishing costs of purchasing healthcare.

And that’s the face of punishing mandates on companies. When companies are already weathering the storm of a bad economy, adding further financial burdens on them is going to force them to make decisions that adversely affect people.

“Free” healthcare doesn’t exist. Somebody has to pay for it. These companies are not charities, they need to function on a for-profit business model. I remember a time when I thought everything was free, and then I turned 8 and realized that the things I was provided came from someone else. Likewise, healthcare costs money, and that means companies are going to have to find it somewhere.

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