McDonald’s Says Health Insurance Overhaul May Hurt Franchisees
October 6th, 10McDonald’s Corp. says the health care overhaul may force many of its franchises to close. According to a report by the Kansas City Star, The Department of Health and Human Services is having some serious discussions with the fast food giant over impending changes in health insurance. New regulations force health plans to spend at least 80 percent of premium dollars on medical costs, which is what McDonald’s has an issue with. According to reports, the company worries that forcing these ratios will force franchises out of business. McDonald’s says it may have to change its current insurance plan.
Government officials say they’re working closely with business like McDonald’s to work through issues with the insurance ratios. “Medical-loss ratios are important because they demonstrate to the employer or family that premium dollars are being used on health care,” Illinois Department of Insurance Director Michael McRaith told the Kansas City Star. McRaith and other insuranc commissioners are developing guidelines on medical-loss ratios for the Obama administration. The government plans to issue guidance about the ratios by the end of the year so that companies have a better idea as to what is considered a medical expense and what isn’t.

