Obamacare May Force McDonald’s to Drop Health Coverage for Employees

by Hans Bader on October 1, 2010

in Economy, Health and Illness, Healthcare, Insurance, Nanny State, Personal Liberty, Politics as Usual, Regulation, Sanctimony, Zeitgeist

Michelle Malkin points out that “McDonald’s has notified the feds that it may be forced to drop health insurance for some 30,000 workers due to the Obamacare mandate.”

A large number of employers may eventually eliminate health coverage due to Obamacare. As The Wall Street Journal notes:

Trade groups representing restaurants and retailers say low-wage employers might halt their coverage if the government doesn’t loosen a requirement for ‘mini-med’ plans, which offer limited benefits to some 1.4 million Americans. The requirement concerns the percentage of premiums that must be spent on benefits. . .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.

It’s not just limited-benefit plans that are disappearing. Excellent health plans that patients prize most are disappearing too.  Earlier, 22,000 seniors lost their health care plan due to Obamacare. Meanwhile, state regulators are approving premium increases due to the increased costs resulting from Obamacare.

By the way, I’m tired of mindless McDonald’s bashing. The food at McDonald’s is no more fattening than at many restaurants which charge much higher prices.  (A Big Mac is healthier than quiche lorraine.)  I lost 10 pounds while working at McDonald’s and eating mostly McDonald’s food (a man in Richmond lost 86 pounds). Yet left-wing busybodies are now using discriminatory zoning rules to block the opening of new McDonald’s franchises in places like Los Angeles, and are calling for taxes on fast food to control what people eat, as part of “healthcare reform.”

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