McDonald’s won’t be forced to raise their minimum annual benefit required by the new health care law, which could have resulted in McDonald’s dropping their health care coverage for some workers. The Department of Health and Human Services issued waivers to 29 companies, including McDonald’s, to help them avoid the need to increase premiums for workers. Higher premiums could result in many companies dropping the option to carry coverage at all.
The new health care billÂ requires businesses to increase their minimum benefits to $750,000 inÂ 2011. Some companies may not be able to afford to do that, or may simply choose not to. This will forceÂ companies to drop coverage, leaving workers to apply for the government sponsored health care plans. Politically, the waivers allow the President to keep his promiseÂ to workers that they will not lose their coverage. Undoubtedly, other companies who don’t get waivers will be forced to drop coverage due to the higher costs.Â The waiver program is intended to provide continuous coverage until 2014, when government-organized marketplaces will offer insurance subsidized by tax credits, according to the USA Today report.