McDonalds considers abandoning its health insurance plan
Fast food giant, McDonalds Corporation, is considering abandoning its health insurance plan if U.S. federal regulators don’t waive a new healthcare requirement.
The dispute involves McDonalds challenging the new regulation requiring health plans to spend at least 80% to 85% of premium revenue on medical costs.
McDonalds offers a mini-med health insurance plan to approximately 30,000 of its hourly workers. Mini-med is a supplemental health insurance designed to help temporary employees cover costs related to doctor’s visits and certain medical procedures.
The benefits from these medical plans are very limited. For annual coverage of $2,000 maximum, the weekly contribution is $14.
The Department of Health and Human Services was last week informed by a senior McDonald's official of the restaurant chain's insurer inability to meet a 2011 requirement.
The group claims the percentage is too high and is not feasible for mini-med plans due to high administrative costs resulting from high worker turnover rate.
McDonald's spokesperson said it would explore other insurance options if it couldn't get the waiver.
"McDonald's will continue to be committed to providing competitive pay and benefits,” said McDonalds chief people officer for the U.S., Steve Russell.