Dem health care law puts McDonald's coverage in jeopardy

Fox News:

McDonald's Corp. has notified federal regulators its health insurance plan for nearly 30,000 hourly restaurant workers isn't compatible with a new requirement of the U.S. health overhaul, The Wall Street Journal reported Wednesday, raising speculation about the fate of those employees' health coverage.

Trade groups representing restaurants and retailers say low-wage employers might halt their coverage if the government doesn't loosen a requirement for "mini-med" plans, which offer limited benefits to some 1.4 million Americans. The requirement concerns the percentage of premiums that must be spent on benefits.

While many restaurants don't offer health coverage, McDonald's provides mini-med plans for workers at 10,500 U.S. locations, most of them franchised. A single worker can pay $14 a week for a plan that caps annual benefits at $2,000, or about $32 a week to get coverage up to $10,000 a year.

Last week, a senior McDonald's official informed the Department of Health and Human Services that the restaurant chain's insurer won't meet a 2011 requirement to spend at least 80 percent to 85 percent of its premium revenue on medical care, the Wall Street Journal reported.

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This is just another problem with this ill advised legislation. It also effects medical savings accounts because they don't spend the required percent of the premiums either. But the fact is that medical savings accounts are a significant benefit to the employee and they save money for both the employer and employee. They just do not fit the Democrat control freak agenda.