Friday, October 1, 2010

The Fed's response to Mcdonald's Mini-health worry

According to WSJ, the Department of Health and Human Services (HHS) says that the secretary will exercise her discretion in enforcing the new minimum medical loss ration requirement. The requirement puts the minimum cap of annual benefit payout at $750,000 and the law requires plan to spend between 80% and 85% of premium on medical benefits. For plans that charge enrollee $14 a week, this is not feasible.
However, the nearly good news is that HHS might extend waivers to employers facing similar issues as to prevent the disrupting of health care coverage for employees that exempt them from meeting the $750,000 cap.


Source: The World Street Journal.

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