Starbucks is Raising Prices and Reducing Employee Healthcare Coverage

Many Americans have become addicted to their morning Starbucks coffee, latte or espresso. If they have a bad day, they blame it on not getting their Starbucks fix. I know of one person in particular who was that way until she stopped drinking Starbucks altogether after they came out endorsing homosexuality.

This past week, Starbucks is planning on cashing in on America’s addiction to their products by raising their prices. Some sizes of brewed coffee are increasing by 10¢ to 20¢ a cup. Prices on espresso and tea latte drinks will cost from 10¢ to 30¢ a cup.

According to Starbucks, the pricing is:

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“continually evaluated on a product-by-product and market-by-market basis in order to balance business needs.”

Speaking of balancing business needs, while Starbucks is raising prices for their addictive beverages, they are increasing pay of many workers by 5% to 15%. That sounds great for Starbucks employees, but what’s not being as widely reported is that Starbucks are also restructuring their healthcare benefits in such a way as to reduce the overall coverage for most of their employees.

The new healthcare coverage will benefit healthier and wealthier workers while costing less healthy workers even more for what could be less coverage. Those who can afford the higher deductible will benefit, but less healthy employees who cannot afford to pay more will find their deductibles going up and their overall coverage becoming primarily catastrophic coverage. Starbucks believes that the new healthcare benefit could save some employees up to $800 a year or $2,600 for a family, but that really only reflects the savings for healthier employees with healthier families. For those who are less healthy with less healthy families, the exact opposite could be true, with these individuals and families paying that much more a year than they have been, and many of these individuals are generally less able to pay more than the healthier and wealthier ones are.

Peter Hilsenrath, a University of the Pacific healthcare economist, commented about Starbucks’ change, saying:

“This is great for Starbucks’ healthier workers and for shareholders, but sicker workers likely will have to pay more.”

“You could say Starbucks is exacerbating a problem that we’re also seeing on the insurance exchanges. Costs keep rising for people who need more coverage because the healthier people choose cheaper, high-deductible plans.”

So remember the next time you walk into your favorite Starbucks or pull up to their drive-in window, that the person who waits on you is having their healthcare coverage eviscerated by a company who cares more for themselves and homosexuals than they do for their employees and their families.

My advice is to stop patronizing Starbucks altogether. Make your own coffee.


Dave Jolly

R.L. David Jolly holds a B.S. in Wildlife Biology and an M.S. in Biology – Population Genetics. He has worked in a number of fields, giving him a broad perspective on life, business, economics and politics. He is a very conservative Christian, husband, father and grandfather who cares deeply for his Savior, family and the future of our troubled nation.

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