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Obamacare Backlash: McDonald's May Drop Health Insurance for 30,000 Workers

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Thursday, 30 September 2010 12:52

Written by Chuck Justice

A Wall Street Journal report released today reveals that fast-food giant McDonald's may end up having to cut their health care plans for some 30,000 employees because of new regulations in Obamacare.  This will impact low wage workers who have what's called mini-med plans - $14/week gets them up to $2000 in annual coverage; $32/week up to $10,000 in annual coverage - and they will lose this if the government doesn't loosen the requirement.  These are the affects of a bill that the country was vehemently opposed to passing.

Health and Human Services Secretary and doofus Kathleen Sebelius has already denied this allegation, calling it "flat out wrong." Sebelius also threatened insurers a few weeks ago that if they spoke negatively about the new health care law, there would be consequences.  Someone needs to remind Sebelius and the Obama administration that this isn't the Soviet Union.

The new regulation requires that insurers spend 80 - 85% of their premium revenue on health care, instead of spending it on executive salaries, marketing, and other costs.  This was the government's way of controlling salaries of those 'evil' insurance companies.  However, depending on the day, 'evil' applies to health insurance companies, oil companies or Wall Street.  The government has no clue how to run a company - competitive compensation and marketing are crucial to increasing revenue.  But trying to explain to the Obama administration is a lost cause.

McDonald's final decision to the new regulation is unclear, but it will be addressed in the coming weeks.

"It would be economically prohibitive for our carrier to continue offering the mini-med unless it got an exemption from the requirement to spend 80 - 85% of premium benefits.  It would deny our people this current benefit that positively impacts their lives and protects their health - and would leave many without an affordable, comparably designed alternative until 2014."

This is what happens when, as House Speaker Nancy Pelosi said, "We need to pass the bill to see what's in it."

And, of course, after responding to allegations, Sebelius, in typical Obama-like fashion, went on to promote the Obamacare and how it will make health care more affordable.

McDonald's should be lauded for providing health care insurance to low-waged employees at such an affordable cost - and for their new Big Mac Snackwrap.  But no, the federal government knows how to bring down that cost even further - by having the taxpayers foot the bill.

Chuck Justice is the editor-in-chief for Habledash.