Another Obamacare Casualty: McDonald's May Drop Health Plan

McDonald's Corp. has warned federal regulators that it could drop its health insurance plan for nearly 30,000 hourly restaurant workers unless regulators waive a new requirement of the U.S. health overhaul.

McDonald's warned federal regulators that it could drop its health insurance plan for nearly 30,000 workers unless regulators waive a new requirement of the U.S. health overhaul. Janet Adamy discusses. Also, Neal Lipschutz discusses the exit plan that the U.S. has agreed on to exit the governments interest in AIG.

McDonald's May Drop Health Plan: The chain has told regulators it may ditch its plan unless a new health-care requirement is waived, Janet Adamy reports.

The move is one of the clearest indications that new rules may disrupt workers' health plans as the law ripples through the real world.

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.

McDonald's and trade groups say the percentage, called a medical loss ratio, is unrealistic for mini-med plans because of high administrative costs owing to frequent worker turnover, combined with relatively low spending on claims.

Read entire article: WSJ

Kingfish has the skinny on the rejection of Rudy Warnock's complaint against independent investigator Richard McAfee

The Mississippi Board of Licensure for Professional Engineers and Surveyors cleared Richard McAfee of any wrongdoing in response to a complaint filed by Madison County Engineer Rudy Warnock.


Madison Mayor Mary Hawkins-Butler and Madison County Engineer Rudy Warnock skirmished a few months ago over his work for Madison County.

The Board took a nice long look at it all and told Rudy: sorry kid, better luck next time. The Board met yesterday and rejected Mr. Warnock's complaint. The Board informed Mr. Carson in a letter that was obtained by Jackson Jambalya through a public records request yesterday.

You can read the entire post and the document links at JJ

For Related Posts of all things Rudy go HERE.