MickyDs could drop health insurance for tens of thousands of workers

From the New Mexico Independent - by Trip Jennings - McDonald’s could drop health insurance for tens of thousands of its workers across the nation if the federal government doesn’t relax a rule set to take effect in coming months, the Wall Street Journal reports. The issue revolves around a new rule in the federal health care law that requires health plans to spend the vast majority of its revenue from policy premiums on health care vs. administrative costs, or face penalties. The Journal captures the fast food chain’s challenge succinctly in a couple of paragraphs high in the story. “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% to 85% of its premium revenue on medical care,” according to the Journal story. That’s because the so-called “mini-med plans” McDonald’s offers workers at 10,500 U.S. locations requires a high degree of administrative costs “owing to frequent worker turnover, combined with relatively low spending on claims,” the Journal reporter explains. It’s unclear from the Journal story if any of the McDonald’s in New Mexico might be affected. But it stands to reason that some might. Read more

MickyDs could drop health insurance for tens of thousands of workers