AUTO INSURANCE

Find an affordable auto insurance provider in your area today with Peppercoin Insurance.

ZIP CODE:  

HOME INSURANCE

Nearly everyone's home is their main investments so it makes sense to make sure that it is adequately protected.

ZIP CODE:  

LIFE INSURANCE

If your family income suddenly stopped could your family cope? Get a free life insurance quote today.

ZIP CODE:  

HEALTH INSURANCE

Search local providers for affordable health insurance quotes for you an your family.

ZIP CODE:  

Posts Tagged ‘Franchising’

McDonald’s Says Health Insurance Overhaul May Hurt Franchisees

October 6th, 10

McDonald’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 .

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.

McDonald’s isn’t the only company with issues regarding the medical-loss ratios. Some say smaller companies with a younger workforce typically have higher turnovers which makes spending 80 percent of premiums on medical services difficult. Most of McDonald’s franchisees tend to be operated as small businesses, but officials wouldn’t release details about benefits. “Health reform is complex, and some companies will have unique situations that make it challenging to comply with new regulations while meeting the needs of their work force,” Jim Winkler, managing principal with employee benefits consulting firm Hewitt Associates, told the Kansas City Star.

Tags: Employee benefit, Health Insurance, McDonald's, insurance plan, McDonald's Corporation