Big changes are on their way for most American businesses, courtesy of Obamacare, according to the CEO of the Cheesecake Factory.
"It will be very costly," David Overton told CBS This Morning on Monday. "I believe most people will have to do that [raise prices] or cheapen their product." Nearly two-thirds of employers say they will have to pay more for health benefits under Obamacare, according to a recent survey by Mercer.
Overton said he doesn't know whether his own company will need to raise prices, since he already provides health insurance to all employees that work 25 hours or more per week. That's fewer hours than required under Obamacare, which will force companies with 50 or more full-time employees to provide employees working at least 30 hours per week with health care coverage or face penalties.
"For those businesses that don't cover their employees, they'll be in for a very expensive situation," Overton told CBS This Morning. Some, such as the CEO of Papa John's and a Denny's franchisee, have claimed they will need to pass on those additional costs to customers. Others, such as an Applebee's franchisee, say the health care overhaul will limit their ability to hire more employees.
(Hat tip: NewsBusters.)