HopeTracker| McDonald’s Corp. has advised federal regulators that it could drop its health insurance coverage for nearly 30,000 hourly restaurant workers unless regulators waive a new requirement that applies to mini-med plans currently covering 1.4 million Americans.
McDonald’s provides mini-med plans for workers at 10,500 U.S. locations. A single worker can pay $14 a week for a plan that caps annual benefits at $2,000, or about $32 a week to get coverage up to $10,000 a year.
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, due to the high administrative costs in administering the mini-med plans in a high-turnover group of employees. Read on at Wall Street Journal.