Papa John’s CEO Lied About Obamacare Cost
Posted by Phoenix Woman on November 15, 2012
In news that will shock nobody who isn’t a FOX News devotee, we find out that John Schnatter, Papa John’s CEO, lied about the cost of Obamacare — aka the Affordable Care Act — to his business:
Caleb Melby of Forbes has graciously done the math on Obamacare’s cost to Papa John’s and according to his analysis, to cover the cost of Obamacare, the pizza chain would have to raise prices by 3.4 to 4.6 cents per pie — way less than the 11 to 14 cents Schnatter claims he needs.
And there are other changes the chain could make to save some money, Melby notes, like not giving away 2 million pizzas for free at a cost of between $24 and $32 million to the company, for example.
(Read Melby’s full analysis here)
We’re guessing Obamacare won’t impact life at Schnatter’s lavish home, a 40,000 square-foot mansion in a tony suburb of Louisville, Kentucky, that features several swimming pools, a private golf course and a 22-car garage among other amenities, according to CelebrityNetworth.com.
Cha-ching.
8 Responses to “Papa John’s CEO Lied About Obamacare Cost”
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Dickeylee said
Just think, for less than a penny per slice, they could give all their employees full coverage across the board. Dental, vision, BC/BS, hell for another penny, a defined pension! Bet they fought the sustainability surcharge that was proposed on tomatoes a few years back that would have allowed growers to pay the migrant pickers a fairer wage also…
Charles II said
I bet Schnatter learns that the cost of having an a–hole as CEO costs more like $1 per pizza.
MEC said
I’ve seen open letters to Schnatter that say, essentially, “Maybe you don’t realize the implications of having employees who are making pizzas when they’re sick because they can’t afford to see a doctor and don’t get sick time. But we do. Nope, not going to risk eating a Papa John’s pizza.”
Phoenix Woman said
If you live in the Madison, Wisconsin area, you’re much better off supporting Ian’s Pizza, which unlike John Schnatter provides both health care benefits and better wages overall to their workers: http://www.huffingtonpost.com/2012/11/15/papa-johns-obamacare-ians-pizza_n_2133050.html
Bruce Etterling said
What a farce this is. Papa John’s 2 million pizza give a way would cost them less per pizza then it would at the regular selling price, it would be at cost. If you look at the figures given here, they are saying it cost $12 to $16. That is misleading. Besides, that is also to get people to try the pizza to gain more customers. It is not an on going promotion. Obama care would be.
Charles II said
Bruce, you may have a point that the cost of a promotion is not the same as the selling price. And it’s true that promotions are not ongoing.
But if you look at the estimates provided by Forbes Magazine, it’s clear (a) that the CEO is lying about the cost of healthcare, and (b) that he can afford to provide healthcare to his employees without losing profits by raising the cost of a pizza by less than 0.5%.
The real farce here is trying to take the kernel of truth you do have and popping it up into a bushel of hot air.
MarkH said
Yes, well, that IS the key skill of the top US CEOs. How else do you make sky high profits selling real stuff. Bushels of hot air are very cheap and even morso when made in Asia or Guatemala or Egypt.
Phoenix Woman said
Bruce, think about who provided the numbers debunking 40,000-square-foot Schnatter’s little hissy fits.
It was Forbes.
Are you going to tell me that Forbes magazine is somehow part of an anti-capitalist plot against good upstanding businessmen like John Schnatter? Really?
Only a crazed Bircherite nutjob of the sort that’s easily swayed by “Agenda 21″ race war paranoia would sincerely believe that.