Last year, not too long after President Obama took office, he held a town hall meeting down in Florida and was asked questions regarding jobs, college tuition and health care by a rather breathless young chap, Julio Osegueda, a college student and McDonald's employee.
Remember when the President said that if you liked your current healthcare plan, you could keep it? Well, in the case of Mr. Osegueda who, at the time did not have health insurance, the President in a very perverse way via ObamaCare may fulfill that pledge.
McDonald's denies it McDonald's Senior VP Steve Russell, who is the head of human resources, calls reports that the company will drop its coverage "completely false." Health and Human Services Secretary Kathleen Sebelius has also denied The Wall Street Journal's report, calling it "flat out wrong."
"I am sorry that they were not more accurate in their reporting," Sebelius said.
McDonald's has threatened to terminate health benefits for almost 30,000 hourly workers if the government doesn't give the corporation a pass on a provision of this year's health care legislation, the Wall Street Journal reports.
The restaurant chain's insurer has refused to meet a 2011 requirement to spend 80 to 85 percent of its revenue from premiums on actual medical care, a McDonald's official told the U.S. Department of Health and Human Services last week. That high of a percentage, McDonald's says, according to the WSJ, doesn't make sense given the high cost of dealing with frequent worker turnover. The requirement was designed to curb executive salaries and other expenses not directly related to health care.
In a memo quoted by the WSJ, McDonald's said it would be "economically prohibitive" for their insurance provider to continue offering plans, in which workers currently can pay $13.99 a week ($727.48 annually) for $2,000 of annual coverage, $24.30 a week ($1,263.60 annually) for $5,000 of annual coverage or $32.30 a week ($1,679.60 annually) for $10,000 of annual coverage, according to the WSJ.
"We're not going to walk away from health-care insurance completely, but we're going to have to look for alternatives if we can't get the resolution we're seeking from Health and Human Services," McDonald's spokeswoman Danya Proud told Bloomberg.
(italicized is an update to the original news story)
The original story makes absolute sense. Why should McDonald's insurers comply with those ObamaCare proportion mandates when they are covering so many low/minimum wage workers that turnover on a regular basis? You think that there might be a tad bit more spent per employee on admin/overhead for those employees as opposed to higher wage earners who stay with the company for a longer period of time? This isn't rocket science except for those in the regime who think those admin. costs can magically be absorbed by McDonald's. In that case, it isn't rocket science for the regime either, rather voodoo.
And the fact that the update involves that thug Kathleen Sebelius indicates that either McDonald's is going to deny it in public for the time being and then just drop the coverage later on or there was some arm-twisting going on by the regime to comply with the mandates and retain the coverage.
We're going with the former.