Are McDonald's employees being squeezed by health care reform?

The fast-food giant warns it might have to drop limited insurance plans for hourly workers. Does this point to a fatal flaw in the reform law?

Nearly 30,000 McDonald's workers could lose their insurance if the fast-food chain has to comply with new health-care reforms.
(Image credit: CC BY: William F. Yurasko)

In a sign that the health overhaul might disrupt insurance coverage for some workers, The Wall Street Journal reported last week that McDonald's is warning it might have to drop a plan covering nearly 30,000 hourly employees. While McDonald's denies the claims, the WSJ reports that the fast-food chain is concerned that its "mini-med" plans — offering limited coverage for low-salary workers — won't meet a new federal requirement that 80 percent to 85 percent of premiums go toward medical care. Is this a sign that the new law could actually deprive some Americans of coverage? (Watch a Fox News report about the rumored proposal)

Obamacare critics saw this disaster coming: "The continued purging of mini-med plans isn't unexpected," says Daniel Foster at National Review. The McDonald's brand name is just getting people to pay attention. The sad truth this illustrates is that the so-called Affordable Care Act will hurt "the very working poor" it is supposed to help. They'll lose coverage at places like McDonald's, get priced out of traditional insurance, and be forced into subsidized plans "some workers may not want or need."

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