National Restaurant Association Expresses Strong Concern About Supreme Court Decision on Health Care Law

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Jun 28, 2012, 12:15 ET

Law's Impact Will Hurt Thousands of Business Owners and their Employees

WASHINGTON, June 28, 2012 /PRNewswire-USNewswire/ -- The National Restaurant Association today expressed strong concern about the U.S. Supreme Court's decision to uphold the majority of provisions within the 2010 Patient Protection and Affordable Care Act (PPACA), including all of the employer requirements which threaten the economic health of the restaurant industry.

"Today's ruling by the Supreme Court is troubling for restaurant operators and business owners across the country," said Dawn Sweeney, President and CEO of the National Restaurant Association. "We encourage Congress to continue efforts to repeal the law, since the Court's decision leaves the employer requirements in place, provisions which impact restaurant operators' ability to grow and create jobs."

Based on the Supreme Court's ruling to uphold the law, employers with 50 or more full-time equivalent employees must offer "affordable" health insurance of minimum value to full-time employees and their dependents or pay penalties. The cost of such coverage or the penalties could threaten the very slim profit margin on which most restaurants operate.

"This unworkable law cannot stand as is," said Sweeney. "We need reform that addresses the increasing costs our members are faced with each year. Restaurant owners are looking for solutions that will allow them to provide better health care coverage options for their team members, but they cannot be saddled with excessive costs and regulatory burdens that threaten their very business. We ask members of Congress to take action that helps the restaurant industry continue to help create jobs and grow the national economy."

"As the analysis of the Court's full ruling becomes clearer, we will continue to evaluate the impact of the implementation of the law on the industry," said Sweeney.

Founded in 1919, the National Restaurant Association is the leading business association for the restaurant industry, which comprises 970,000 restaurant and foodservice outlets and a workforce of nearly 13 million employees. Together with the National Restaurant Association Educational Foundation, the Association works to lead America's restaurant industry into a new era of prosperity, prominence, and participation, enhancing the quality of life for all we serve. For more information, visit our Web site at www.restaurant.org.

SOURCE National Restaurant Association