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Lots and Lots of People Will Lose Their Current Coverage

Obama promised that if you liked your health-care coverage, you could keep it under ObamaCare. But not really. Not remotely close, actually:

McDonald’s Corp. has warned federal regulators that it could drop its health insurance plan for nearly 30,000 hourly restaurant workers unless regulators waive a new requirement of the U.S. health overhaul.

The move is one of the clearest indications that new rules may disrupt workers’ health plans as the law ripples through the real world.

Trade groups representing restaurants and retailers say low-wage employers might halt their coverage if the government doesn’t loosen a requirement for “mini-med” plans, which offer limited benefits to some 1.4 million Americans.

It’s not simply the mini-med plans (which don’t meet the ObamaCare regulation “to spend at least 80% to 85% of its premium revenue on medical care” because of high turnover and administrative costs). ObamaCare is already wreaking havoc throughout the health-care system:

McDonald’s move is the latest indication of possible unintended consequences from the health overhaul. Dozens of companies have taken charges against earnings—totaling more than $1 billion—over a tax change in prescription-drug benefits for retirees.

More recently, insurers have proposed a round of double-digit premium increases and said new coverage mandates in the law are partly to blame. HHS has criticized the proposed increases as unwarranted.

We also learned this week:

Harvard Pilgrim Health Care has notified customers that it will drop its Medicare Advantage health insurance program at the end of the year, forcing 22,000 senior citizens in Massachusetts, New Hampshire, and Maine to seek alternative supplemental coverage.

The decision by Wellesley-based Harvard Pilgrim, the state’s second-largest health insurer, was prompted by a freeze in federal reimbursements and a new requirement that insurers offering the kind of product sold by Harvard Pilgrim — a Medicare Advantage private fee for service plan — form a contracted network of doctors who agree to participate for a negotiated amount of money. Under current rules, patients can seek care from any doctor.

The administration kept promising that the public would like what they found in ObamaCare. However, the more they see, the more they are likely to conclude they were scammed.

UPDATE: HHS Secretary Kathleen Sebelius says the Wall Street Journal’s story is false.  But her denial is suspect: “Sebelius suggested that McDonald’s may in fact get a waiver from HHS that would enable the fast-food giant to continue offering limited benefits plans to its employees. But neither Sebelius nor McDonald’s officials have ruled out the possibility that the company would drop such insurance coverage, which is what the Journal claimed.”


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