10-06-2010, 08:37 PM
A while back there was a thread about McDonalds health insurance with some people having the impression (thanks in no small part to misleading information from the Wall Street Journal) that McDonalds' employees would lose their insurance due to the ACA (Affordable Care Act). First, it was shown that that assertion was not true, and second, it was shown that the plan is a really crap plan anyway.
Here's some information that shows that once the ACA kicks in more fully in 2014, McDonalds' employees will be WAY better off than they are now (it doesn't fully kick in until 2014 because, once again, timid Blue Dog Democrats pushed for the delay):
http://theincidentaleconomist.com/wordpr...n-the-nyt/
Here's some information that shows that once the ACA kicks in more fully in 2014, McDonalds' employees will be WAY better off than they are now (it doesn't fully kick in until 2014 because, once again, timid Blue Dog Democrats pushed for the delay):
http://theincidentaleconomist.com/wordpr...n-the-nyt/
Right now a worker at McDonalds is paying $32 a week, or $1664 a year, for a plan that caps out at $10,000 a year. Let’s assume we’re considering a single male worker, age 27, who lives in a state where non-pregnant adults are not eligible for Medicaid (like most states). Let’s also consider a range of salaries that this person might be making, from minimum wage up to $12 an hour (which is high for McDonalds). Here’s what things might look like for him in 2014 compared to now, if he took his free choice voucher and went to the exchange (2014 dollars):
Per hour salary Annual premium
$ 7.25 $ -
$ 9.00 $ 858.00
$ 10.00 $ 1,030.00
$ 11.00 $ 1,429.00
$ 12.00 $ 1,720.00
[Sorry I can't get the chart to look right - the number farther to the left in each row is the hourly wage and the number to the right in the same row is the annual premium.]
A minimum wage worker would qualify for Medicaid under PPACA in 2014. So his premium would be nothing. Total win for him there.
People making $9-$11 an hour would pay less each year than they are for their McDonalds mini-med plan right now. Less. If the worker is paid $12 an hour, they will wind up paying $56 dollars more per year, or just over a dollar more per week.
But they will have real insurance. Their yearly cap won’t be $10,000; yearly caps will be gone. So will lifetime caps. And the coverage will be much more robust.
Moreover, workers under 27 can get on their family’s plans.