As revealed by The Wall Street Journal, McDonald's Corp have asked Obama administration to waive off the new legislation that makes it mandatory for enterprises to opt for an alternative health care plan for some of their workers, unless they could cut health insurance for its around 30,000 hourly workers.
On Wednesday, the newspaper reported that the world famous food chain opposes the law’s terms and conditions that the insurance plans must spend at least 80% of the revenues from premiums on medical care. The newspaper collected the information from the Company’s memo.
In the memo, McDonald's expressed to federal regulators that the law is unaffordable for its insurance agency and in such a scenario it would not be able to continue with its provision of health insurance to its workers, unless the requirement of 80% minimum premium is waved off.
As per the legislation, a restriction will be put on the funds to be employed for marketing, executive salaries, and other nonmedical uses, as contained in the report emailed to Reuters by restaurant chain.
Steve Russell, the Company's head of human resources said, “"We've had the opportunity to speak with regulatory agencies directly to better understand the implications of the law and to share our point of view”.
But no assurance has been provided by the federal officials for the waiver of the new legislation.