McDonald’s says it may drop healthcare benefits

Share via
From Reuters

McDonald’s Corp. may cut health insurance for nearly 30,000 hourly workers in the U.S. unless federal regulators waive a requirement of the new healthcare law.

The restaurant chain is at odds over the law’s stipulation that “mini-med” insurance plans, which provide limited benefits, spend at least 80% of premium revenue on medical care, the Wall Street Journal reported, citing a company memo.

McDonald’s told federal regulators it would be “economically prohibitive” for its insurance carrier to continue to cover hourly workers unless it receives a waiver excluding it from the 80% requirement, the memo said.


Many McDonald’s hourly workers are covered by mini-med policies, for which they pay weekly fees of up to $32 for benefits capped at as much as $10,000 annually, the Journal reported.

The article quoted a Department of Health and Human Services official as saying the government does not want employers to drop coverage because of the law.