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EDITOR OF REDSTATE

McDonald’s is the Next to Get Rid of Employee Healthcare

This was not an unforeseen consequence of Obamacare. This was not unknown. This was not unexpected. It was predicted.McDonald’s is planning to drop the healthcare coverage of 30,000 employees unless the Obama Administration waives certain rules related to 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% to 85% of its premium revenue on medical care.

This presents a further dilemma. McDonald’s is a huge corporation with a lot of clout. But there are many small businesses equally affected by the same regulations who will not have the clout of a McDonald’s. How many of them will ultimately go out of business because of Obamacare?

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