McDonald's May Drop Health Plan

[CaféAuLait]

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 Says It May Drop Health Plan - WSJ.com

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.

They may have to drop coverage because of the law-- this is what is being called an unintended consequence of Obamacare. They offer cheap insurance when many and now the payout will not meet with federal guidelines.

 

[Oddball]

More hope!...More change!

 

[uscitizen]

From the OP linked article.
\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. \

So McDonalds is charging too much for insurance? That means instead of dropping rates they cancel the coverage?

 

[CaféAuLait]

From the OP linked article.
\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. \

So McDonalds is charging too much for insurance? That means instead of dropping rates they cancel the coverage?

$ 14.00 a week, how much lower should they have to go?

 

[uscitizen]

From the OP linked article.
\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. \

So McDonalds is charging too much for insurance? That means instead of dropping rates they cancel the coverage?

$ 14.00 a week, how much lower should they have to go?

Low enough to stay within the law.
And $14/wk is $56/mo for 2,000 MAX per year of coverage.

This all kinda looks like special interest lobbying to me.

 

[del]

From the OP linked article.
\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. \

So McDonalds is charging too much for insurance? That means instead of dropping rates they cancel the coverage?

no, the cost of administering the program is higher than normal due to employee turnover, and most employees don't make that many claims against it. this health care law is about the most poorly crafted piece of legislation in the nation's history. a bunch of grandstanding asshats pushed it through, and they had, and have, no idea what they were doing.

 

[CaféAuLait]

From the OP linked article.
\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. \

So McDonalds is charging too much for insurance? That means instead of dropping rates they cancel the coverage?

$ 14.00 a week, how much lower should they have to go?

Low enough to stay within the law.
And $14/wk is $56/mo for 2,000 MAX per year of coverage.

This all kinda looks like special interest lobbying to me.

And if they can't? They offer insurance when most other restaurants do not... I had a mini plan at one employer when I was going through school (no parent to provide insurance). If I remember correctly the cap was 15 grand a year I paid 20 something a week. I had a problem with kidney/bladder infections and ended up in the Urgent Care’s several times a year—the mini plan paid out a heck of a lot more than the grand I paid a year and a lot more than I could have ever afforded to pay. I think I would rather have that than nothing at all.

 

[uscitizen]

From the OP linked article.
\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. \

So McDonalds is charging too much for insurance? That means instead of dropping rates they cancel the coverage?

no, the cost of administering the program is higher than normal due to employee turnover, and most employees don't make that many claims against it. this health care law is about the most poorly crafted piece of legislation in the nation's history. a bunch of grandstanding asshats pushed it through, and they had, and have, no idea what they were doing.

Ohh I predicted pretty much how the Healthcare reform would work out before debate even started.
It would be something that would benefit the health ins/care industry.

And McDonalds just needs to work smarter and increase efficiencies in their insurance administration business.
Remember they are in the business of rapid employee turnover. So they should play by the rules for an employer of that type.

Again I think this is special interest lobbying.

 

[uscitizen]

I wonder... did McDonalds insurance division lose money in the market drop?

 

[del]

From the OP linked article.
\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. \

So McDonalds is charging too much for insurance? That means instead of dropping rates they cancel the coverage?

no, the cost of administering the program is higher than normal due to employee turnover, and most employees don't make that many claims against it. this health care law is about the most poorly crafted piece of legislation in the nation's history. a bunch of grandstanding asshats pushed it through, and they had, and have, no idea what they were doing.

Ohh I predicted pretty much how the Healthcare reform would work out before debate even started.
It would be something that would benefit the health ins/care industry.

And McDonalds just needs to work smarter and increase efficiencies in their insurance administration business.
Remember they are in the business of rapid employee turnover. So they should play by the rules for an employer of that type.

Again I think this is special interest lobbying.

are colleges in the business of high turnover? their plans aren't going to meet this standard either. mcdonald's doesn't administer the plan, btw, their insurance co does.

 

[Sheldon]

Insurers say dozens of other employers could find themselves in the same situation as McDonald's. Aetna Inc., one of the largest sellers of mini-med plans, provides the plans to Home Depot Inc., Disney Worldwide Services, CVS Caremark Corp., Staples Inc. and Blockbuster Inc., among others, according to an Aetna client list obtained by the Journal. Aetna also covers AmeriCorps teaching-program sponsors, who are required by law to make health coverage available.

If I remember right, Caterpillar, AT&T, and Valero are also planning on reducing their health plans because of this law. The way it's playing out so far, I don't think Obama will be able to spin it as a net positive in 2012.

 

[uscitizen]

no, the cost of administering the program is higher than normal due to employee turnover, and most employees don't make that many claims against it. this health care law is about the most poorly crafted piece of legislation in the nation's history. a bunch of grandstanding asshats pushed it through, and they had, and have, no idea what they were doing.

Ohh I predicted pretty much how the Healthcare reform would work out before debate even started.
It would be something that would benefit the health ins/care industry.

And McDonalds just needs to work smarter and increase efficiencies in their insurance administration business.
Remember they are in the business of rapid employee turnover. So they should play by the rules for an employer of that type.

Again I think this is special interest lobbying.

are colleges in the business of high turnover? their plans aren't going to meet this standard either. mcdonald's doesn't administer the plan, btw, their insurance co does.

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.

I have a bit of trouble fitting that last sentence in with McDonalds rationalle. Low spending on claims means more profit?

Yeah it does they don't pay the 80% for claims like they should.
With all those McDonalds employees and low payouts someone is making a shipload of money.

 

[del]

Ohh I predicted pretty much how the Healthcare reform would work out before debate even started.
It would be something that would benefit the health ins/care industry.

And McDonalds just needs to work smarter and increase efficiencies in their insurance administration business.
Remember they are in the business of rapid employee turnover. So they should play by the rules for an employer of that type.

Again I think this is special interest lobbying.

are colleges in the business of high turnover? their plans aren't going to meet this standard either. mcdonald's doesn't administer the plan, btw, their insurance co does.

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.

I have a bit of trouble fitting that last sentence in with McDonalds rationalle. Low spending on claims means more profit?

what part of mcdonald's doesn't self insure are you failing to get?

from the link:

Officials said McDonald's would probably have to hit the 85% figure, which applies to larger group plans. Its insurer, BCS Insurance Group of Oak Brook Terrace, Ill., declined to comment.

 

[chanel]

Benefit consultants anticipate that, by 2014, most employers will stop offering mini-med plans. Such plans likely wouldn't meet the definition of adequate coverage for full-time workers. Under the law, midsize and large employers that fail to offer such coverage will have to pay a fine.

Until 2014, workers on mini-med plans would have few affordable alternatives for coverage. According to a survey by the Restaurant Opportunities Centers United, workers without health insurance were three times as likely to visit the emergency room without being able to pay as their counterparts with health insurance.

"The packages maybe could be better, but for a start, they're quite good," said Jerry Newman, a professor at State University of New York at Buffalo, who worked under cover at McDonald's to write "My Secret Life on the McJob." He added: "For those who didn't have health insurance through their spouse, it was a life saver."

McDonald's Says It May Drop Health Plan - WSJ.com

How many companies will now consider "taking the fine"? I believe it is less than 10% of payroll. Many companies now pay two or three times that.

Unintended consequences.

 

[Mini 14]

FOXNews.com - Report: McDonald's May Drop Health Care Plan

At what point is it ok to say "we told you so"?

The only people who didn't see this coming were those who didn't read the bill, or those who are too stupid to understand it.

Obama is screwing us over a barrel.

threads merged-del

 

[Ravi]

And yet:

But McDonald's issued a statement Wednesday denying that it planned to drop coverage for its employees and defending its benefit plans.

 

[Mini 14]

And yet:

But McDonald's issued a statement Wednesday denying that it planned to drop coverage for its employees and defending its benefit plans.

You would fall into the category of people I describe after the word "or."

 

[Ringel05]

MacDonalds is destructive to America but this is actually about Obama and the heath care issue. Got it.

 

[Baruch Menachem]

That is what 0bama thinks

 

[skookerasbil]

More proof that people on the left missed ALL the meetings about how the market works!!!


Fcukking hysterical..............