Howard Schultz on Health Care

Starbucks CEO; independent candidate for President


Single-payer health care is a false promise

Schultz earned praise for the benefits he provided Starbucks retail workers, including health-care coverage options for part-time employees. But he also has signaled a willingness to break with Democratic orthodoxy. "We have to go after entitlements," he said in the CNBC interview last year. He also dismissed as "false promises" the proposals for single-payer health care and guaranteed federal jobs that have become popular on the left, saying that they were fiscally unworkable.
Source: Washington Post on 2020 presidential hopefuls , Jan 18, 2019

Expand coverage to include part-time employees

We expanded our health-care coverage to include part-timers who worked as little as 20 hours a week. In the late 1980s, employer generosity was hopelessly out of fashion. Corporate raiders and soaring health-care costs had forced many American executives to reduce benefits.

At the same time, health-care bills were soaring to unmanageable heights. Few companies covered part-time workers at all, and those who did restricted benefits to those working at least 30 hours a week. Most executives were actively looking for ways to contain their medical insurance expenses.

Starbucks went the other direction: Instead of cutting health-care benefits, we found a way to increase ours. I saw my plan not as a generous optional benefit but as a core strategy. Treat people like family, and they will be loyal and give their all.

We began offering full health benefits to all part-timers in late 1988. To my knowledge, we became the only private company--and later the only public company--to do so.

Source: Pour Your Heart Into It, by Howard Schultz, p.126-128 , Jan 6, 1999

Offer employee coverage for terminal illnesses

The true value of our health-care program struck me most deeply in 1991, when we lost one of our earliest & most devoted partners, Jim Kerrigan, to AIDS. Jim started as a barista in 1986 and rose to the position of store manager.

Then one day, Jim came into my office and told me he had AIDS. It took incredible courage. I had known he was gay but had no idea he was sick. His disease had entered a new phase, he explained, and he wouldn't be able to work any longer.

Starbucks had no provision for employees with AIDS. We had to make a policy decision. Because of Jim, we decided to offer health-care coverage to all employees who have terminal illness, paying medical costs in full from the time they are not able to work until they are covered by government programs, usually 29 months.

After his visit to me, I spoke with Jim often and visited him at the hospice. Within a year, he was gone. I received a letter from his family afterward, telling me how much they appreciated our benefit plan.

Source: Pour Your Heart Into It, by Howard Schultz, p.128-129 , Jan 6, 1999

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2020 GOP and Independent Candidates:
Pres.Donald Trump (R-NY)
V.P.Mike Pence (R-IN)
Gov.Bill Weld (L-MA)
CEO Howard Schultz (I-WA)
Gov.Jesse Ventura (I-MN)
V.C.Arvin Vohra (L-MD)

2020 Withdrawn Candidates:
Mayor Mike Bloomberg (I-NYC)
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Page last updated: Mar 15, 2019