McDonald's and 29 other firms get health care coverage
waivers just before November Elections
Obama promised
LOL "no one would lose their health coverage" under his Obamacare plan. Now
less than a month before the election over 1 million people would have lost
the health care coverage they've got. The Liberal Media won't tell you that
they got an exemption.
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Thirty companies and organizations, including McDonald's (MCD) and Jack in
the Box (JACK), won't be required to raise the minimum annual benefit
included in low-cost health plans, which are often used to cover part-time
or low-wage employees.
The Department of Health and Human Services, which provided a list of
exemptions, said it granted waivers in late September so workers with such
plans wouldn't lose coverage from employers who might choose instead to drop
health insurance altogether.
Without waivers, companies would have had to provide a minimum of $750,000
in coverage next year, increasing to $1.25 million in 2012, $2 million in
2013 and unlimited in 2014.
"The big political issue here is the president promised no one would lose
the coverage they've got," says Robert Laszewski, chief executive officer of
consulting company Health Policy and Strategy Associates. "Here we are a
month before the election, and these companies represent 1 million people
who would lose the coverage they've got."
The United Agricultural Benefit Trust, the California-based cooperative that
offers coverage to farm workers, was allowed to exempt 17,347 people. San
Diego-based Jack in the Box's waiver is for 1,130 workers, while McDonald's
asked to excuse 115,000.
The plans will be exempt from rules intended to keep people from having to
pay for all their care once they reach a preset coverage cap. McDonald's,
which offers the programs as a way to cover part-time employees, told the
Obama administration it might re-evaluate the plans unless it got a waiver.
McDonald's and Jack in the Box didn't immediately respond to requests for
comment.
The waiver program is intended to provide continuous coverage until 2014,
when government-organized marketplaces will offer insurance subsidized by
tax credits, says HHS spokeswoman Jessica Santillo.
The regulations would have hit some insurance plans for young adults in the
universal coverage program run by the state of Massachusetts. The program,
enacted in 2006, has a plan for individuals ages 18 to 26 who can't get
coverage through work, covering about 5,000 people. The waiver obtained by
the state "will give us time to implement the transition plan in a manner
designed to mitigate premium increases," says Dick Powers, a spokesman for
the state program.
The biggest single waiver, for 351,000 people, was for the United Federation
of Teachers Welfare Fund, a New York union providing coverage for city
teachers. The waivers are effective for a year and were granted to insurance
plans and companies that showed that employee premiums would rise or that
workers would lose coverage without them, Santillo says.
By Drew Armstrong, Bloomberg Business News
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