Mcdonald Drops Health Plan
- Submitted by: Geegee
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- Category: Politics: Economics
- Date Submitted: 11/17/2010 07:31 PM
- Pages: 2
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McDonald’s May Drop Health Plan
The Wall Street Journal (WSJ), September 30, 2010 article claims McDonald is threatening to drop health coverage for 30, 000 of their workers medical coverage due to Obama new healthcare law requirements. Companies like McDonalds will have to pay a minimum of between 80% and 85% of their revenue on medical care instead of overhead cost. Currently McDonald’s provides a “mini med” limited benefit plan to U.S. locations which mostly are franchised. According to the article a single worker pays $14 a week which caps annual benefits at $2,000 or about $32 a week to get coverage up to $10,000 a year. McDonald has had this benefit plan available for about 10 years and also claims most participants have less that $5,000 in medical expenses a year.
According to the WSJ, McDonald’s has communicated to federal officials “It would be economically prohibitive for McDonalds insurance carrier BCS Insurance Group to continue to offer the minimed plan” unless it got an exemption from the requirement to spend 80% to 85% premiums on benefits. McDonalds did not offer what their loss would be. Senator Jay Rockefeller, chairman of Senate Committee of Commerce, Science and Transportation requested that BCS Insurance group to produce five years history of charges in premiums, spend on care, and the number of workers of reached the cap.
McDonald's leads the global foodservice retailer with over 32,000 local restaurants serving more than 60 million people in 117 countries. More than 75% of McDonald's restaurants worldwide are owned and operated by independent local men and women. Despite the challenges faced in 2010 McDonald U.S. comparable sales increased 4.6% for the month of August 2010.
The Wall Street Journal (WSJ), September 30, 2010 article claims McDonald is threatening to drop health coverage for 30, 000 of their workers medical coverage due to Obama new healthcare law requirements. Companies like McDonalds will have to pay a minimum of between 80% and 85% of their revenue on medical care instead of overhead cost. Currently McDonald’s provides a “mini med” limited benefit plan to U.S. locations which mostly are franchised. According to the article a single worker pays $14 a week which caps annual benefits at $2,000 or about $32 a week to get coverage up to $10,000 a year. McDonald has had this benefit plan available for about 10 years and also claims most participants have less that $5,000 in medical expenses a year.
According to the WSJ, McDonald’s has communicated to federal officials “It would be economically prohibitive for McDonalds insurance carrier BCS Insurance Group to continue to offer the minimed plan” unless it got an exemption from the requirement to spend 80% to 85% premiums on benefits. McDonalds did not offer what their loss would be. Senator Jay Rockefeller, chairman of Senate Committee of Commerce, Science and Transportation requested that BCS Insurance group to produce five years history of charges in premiums, spend on care, and the number of workers of reached the cap.
McDonald's leads the global foodservice retailer with over 32,000 local restaurants serving more than 60 million people in 117 countries. More than 75% of McDonald's restaurants worldwide are owned and operated by independent local men and women. Despite the challenges faced in 2010 McDonald U.S. comparable sales increased 4.6% for the month of August 2010.