It looks like the Obama administration’s new health care plan is already encountering opposition from businesses, and the one coming forward saying it can’t afford the new health care regulations is a big one.
McDonald’s claims “it would be economically prohibitive for our carrier to continue offering” its “mini-med” limited benefit plan to around 30,000 employees unless it got an exemption from the new health care requirement that they spend 80% to 85% of premiums on medical benefits instead of overhead expenses.
Continue reading to find out what McDonald’s plans to do…
McDonald’s currently gives its employees limited health care coverage, but the new health care plan would effectively require McDonald’s to spend much more on each employees health care than they can afford to do so. McDonald’s would have to end up raising prices elsewhere to help offset its employees health care costs.
“We fully intend to exercise her discretion under the new law to address the special circumstances of mini-med plans in the medical loss ratio calculations,” said Jay Angoff, a director at the Department of Health and Human Services, referencing health care czar Kathleen Sibelius, who has the power to approve exemptions to the new regulation . “We intend to address these and other special circumstances in forthcoming regulations.”
White House officials said they have sought to ensure that insurance coverage for employees isn’t disrupted as a result of the law.
The Obama administration expects to encounter even more resistance to the new regulations in the health care overhaul as they push forward.