McDonald's May Drop Health Plan

[Conspiracist]

Maybe I misread here. According to my interpretation of the article, it seems the insurer is the one refusing to meet standards. Makes me wonder why McDonald's is the center piece. Please correct me if I misread something.

 

[WillowTree]

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.

I personally think these are the INTENDED CONSEQUENCES. They hope to make it so hard for employers to meet the demands that they drop employees and then the stupid ***** can move to a one payer system.

 

[AllieBaba]

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.

This is exactly what we said would happen. Obamacare is herding the masses into state managed, CRAPPY health insurance, and eliminating the quality private health insurance. It's bullshit and it will be repealed, hopefully.

 

[RDD_1210]

Ummm......THIS is what you're complaining about? (taken directly from the 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 percent to 85 percent of its premium revenue on medical care, the Wall Street Journal reported."

Damn Obama for wanting insurers to have to spend more money on actual medical care and not line their pockets. You're right, he really doesn't get it. LMAO!

 

[RDD_1210]

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.

So which group do you fall in to? Did you not read the bill or too dumb to understand it?

I'm guessing it may be both because you just showed you either didn't read the article you posted or were too dumb to understand it.

 

[Ravi]

McDonald’s doesn’t plan to drop health-care coverage for employees, said Danya Proud, a spokeswoman for the Oak Brook, Illinois-based company, in an interview yesterday. She declined to provide a memo sent to U.S. Health and Human Services in which McDonald’s requested the waiver, saying the correspondence is proprietary

McDonald's Seeks Waiver Over New Health-Care Law, Official Says - Bloomberg

 

[del]

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.

So which group do you fall in to? Did you not read the bill or too dumb to understand it?

I'm guessing it may be both because you just showed you either didn't read the article you posted or were too dumb to understand it.

i love unintended irony.

keep it coming

 

[Wry Catcher]

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.

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

Lying by commission and lying by omission are both forms of lying. Don't you 'think'?

 

[GHook93]

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.

My company announced the same thing! Less coverage, higher deductibles and higher premiums. A triple wammie!

 

[Ava]

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.

True. I am glad this is happening and am sure it will continue. Obama's goals of shutting down the insurance businessess, and putting ppl on Medicaid, seems to be working. Glad it is starting before Nov. 2nd so those undecided voters can see the devastating results of controlling other people's business and earnings. Capitalism, with it's peaks and valleys is the only system that can result in a prosperous nation. Not redistribution of wealth, otherwise known as Democratic Socialism.

 

[uscitizen]

And yet:

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

'

did they already get a promise of special treatment?

 

[Annie]

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.

I've heard the college plans won't make this either, for the same reasons. Actually it's a bit of an illustration why so many 'kids' choose not to buy insurance, until they obtain a job that provides it. They are willing to run the risk. Now parents fret like crazy knowing that it takes one serious incident to lead to thousands of dollars in med bills, yet usually it works out fine for the kids. Here's a bit on the college plans and whether or not they will get exemptions:

Will College Health Plans Be Exempted From Health-Care Overhaul Law? - Health Blog - WSJ

 

[Avatar4321]

Is this really shocking? This is exactly what Obamacare was designed to do. Squeeze out all private insurance and make the government default.

I wonder how the workers feel about this.

 

[syrenn]

I tell ya though, the more regular people this hurts, once the real consequences are known and felt, the faster it will be repealed,

 

[saveliberty]

Sounds like the high adminstrative costs of maintaining the plan are what drives the insurer to keep premiums at the current level. A high employee turnover rate like McDonalds will do that. Obama going to threaten Ronald McDonald House next?

 

[goldcatt]

I understand the purpose of the law, an attempt to keep employers and/or their insurers from gouging the employees with unreasonably high premiums. But...surprise! When setting the required ratio nobody took into account the wide variety of plans out there, the legitimate claim histories and administrative costs of those plans under different circumstances for different employers and the unintended consequences of the across the board 85% rule.

Gee, when have we heard about major legislation being rammed through without taking the time to do it right before? Dozens of times? Hundreds of times? You'd think they would have learned by now.

 

[007]

I personally think these are the INTENDED CONSEQUENCES. They hope to make it so hard for employers to meet the demands that they drop employees and then the stupid ***** can move to a one payer system.

This is exactly what we said would happen. Obamacare is herding the masses into state managed, CRAPPY health insurance, and eliminating the quality private health insurance. It's bullshit and it will be repealed, hopefully.

Funny how two posts that cut directly to the heart of the matter can be so utterly ignored.

Willow and Allie, you two are absolutely CORRECT.

 

[RDD_1210]

I personally think these are the INTENDED CONSEQUENCES. They hope to make it so hard for employers to meet the demands that they drop employees and then the stupid ***** can move to a one payer system.

This is exactly what we said would happen. Obamacare is herding the masses into state managed, CRAPPY health insurance, and eliminating the quality private health insurance. It's bullshit and it will be repealed, hopefully.

Funny how two posts that cut directly to the heart of the matter can be so utterly ignored.

Willow and Allie, you two are absolutely CORRECT.

Ok that settles it. Pale Rider has spoken and told us what is correct based upon his obvious wealth of knowledge and experience. We can all move on now. Nothing left to see here.

 

[Greenbeard]

This is exactly what we said would happen. Obamacare is herding the masses into state managed, CRAPPY health insurance, and eliminating the quality private health insurance. It's bullshit and it will be repealed, hopefully.

Mini-med plans are your definition of "the quality private health insurance"?

McDonald’s doesn’t plan to drop health-care coverage for employees, said Danya Proud, a spokeswoman for the Oak Brook, Illinois-based company, in an interview yesterday. She declined to provide a memo sent to U.S. Health and Human Services in which McDonald’s requested the waiver, saying the correspondence is proprietary

McDonald's Seeks Waiver Over New Health-Care Law, Official Says - Bloomberg

People seem to be missing this point.

 

[syrenn]

I personally think these are the INTENDED CONSEQUENCES. They hope to make it so hard for employers to meet the demands that they drop employees and then the stupid ***** can move to a one payer system.

This is exactly what we said would happen. Obamacare is herding the masses into state managed, CRAPPY health insurance, and eliminating the quality private health insurance. It's bullshit and it will be repealed, hopefully.

Funny how two posts that cut directly to the heart of the matter can be so utterly ignored.

Willow and Allie, you two are absolutely CORRECT.

Ok that settles it. Pale Rider has spoken and told us what is correct based upon his obvious wealth of knowledge and experience. We can all move on now. Nothing left to see here.

sucks when he is right though doesn't it?