McDonald's Might Drop Health Plan?


I just don't know enough about health insurance to figure this out, but McDonald's is warning that it might drop its health plan for hourly employees. My question would be this: why should McDonald's pay the extra premiums on something that will now be legislated that every American have? I'm not being snide, nor am I complaining. I'm just curious what McDonald's real reasoning might be behind this? Can someone explain?

Nota bene: Balloon Juice breaks it all down here. Very interesting and worth a read.


Sean Paul Kelley September 30, 2010 - 9:47am
( categories: Business | USA: Domestic Issues )

that we'll be revisiting health care after the republicans repeal the last debacle (or pare down major pieces of it.) We didn't do the job the first time, so we get to do it again later.

zot23 September 30, 2010 - 10:55am

This is the bending. Employers cut their costs by passing them on to employees.

Synoia September 30, 2010 - 12:00pm

Get bent.

Tim September 30, 2010 - 12:29pm

First, let me note that McDonald's is already denying that they are actually making plans to end their coverage. Apparently, they have objected to the requirement in the legislation regarding MLR (medical loss ratio,) which pertains to the percentage of insurer's premiums that must pay for actual medical costs. McDonald's is a truncated version of health insurance, with limiting caps on both number of MD visits and limits on annual payment per person. So its insurance doesn't protect its employees if they get really sick, i.e., develop cancer, say.

The legislation anticipated that until the exchanges are up, some pre-existing medical plans would have to be waivered-in.

Jon Cohn at TNR has a helpful take on what's going on.

scriptbabe451 September 30, 2010 - 12:53pm

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