McDonald’s gets Health Care Coverage Waiver

Filed in Uncategorized by on October 8, 2010 0 Comments

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.

A new McDonald's restaurant sits on the Olympic Green next to China's National Aquatic Center, or Water Cube, and the country's National Stadium, or Bird's Nest, in Beijing September 30, 2010. In a country that has taken pride in the delicacy and diversity of a cuisine which dates back thousands of years, it is astonishing that foreign fast food chains like McDonald's and Kentucky Fried Chicken are dominating the fast food industry in China. UPI/Stephen Shaver Photo via Newscom

The new health care bill requires businesses to increase their minimum benefits to $750,000 in 2011. Some companies may not be able to afford to do that, or may simply choose not to. This will force companies to drop coverage, leaving workers to apply for the government sponsored health care plans. Politically, the waivers allow the President to keep his promise 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.  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.

Not surprisingly, the largest single waiver went to the United Federation of Teachers, a long standing union that has supported President Obama. Their waiver will cover 351,000 people.

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