McDonald’s no Plans to Drop Health Plan

By on Oct 1, 2010 in United States, World Comments

McDonald’s denied having plans to drop health plan for its workers, which is contrary to earlier reports.

As published in ABC News a few hours ago, McDonald’s said that the company has no plans to drop the “mini-med” plan.

“Media reports stating that we may drop health care coverage for our employees are completely false,” Steve Russell, the senior VP and Human Resources head for McDonald’s said in a written response to previous news reports.

“These reports are purely speculative and misleading.” Russell added.

Russell was reportedly referring to the earlier post at Wall Street Journal, where a memo by their company was reviewed saying that McDonald’s is ‘asking federal officials to determine if their most basic health insurance plans can be exempted from the Medical Loss Ratio (MLR), a requirement in the new US Health Care law’.

According to new law, it requires an 80-85 percent of the premiums received to go directly to patient care, not to other expenses like overhead, executive salaries or dividends for shareholders.

As ABC News got data from the company, it said that ‘nearly 30,000 McDonald’s employees currently participate in the plan, which provides a maximum of $2,000 to $10,000 a year in basic medical coverage at a cost of $14 to $32 a week’.

Meanwhile, US Health and Human Services Secretary Kathleen Sebelius supported the statement of McDonald’s denial that the company may drop health plans.

In a recent reporters’ breakfast organized by the Christian Science Monitor, Sebelius said that “The McDonald’s story is flat-out wrong, and I am sorry that they were not more accurate in their reporting”.

However, Sebelius said in the report that ‘the medical loss ratio issue is one that isn’t even settled’.

But she assured McDonald’s and others that they ‘will begin the discussions as soon as the regulation process is ready’, reports said.

Spread The News!

Tags: , , ,


Related News

What's On Your Mind?