Outlawing Health Insurance that is Too Cheap?
Such policies guarantee that small employers won’t be responsible for any medical payments over a certain amount per employee, perhaps as low as $10,000 or $20,000, with the rest paid by an insurer. Regulators and health-policy experts said this arrangement undercuts the notion of self-insurance because employers aren’t bearing much of the risk.
To address that, the state wants to ban stop-loss coverage below $95,000 per employee, raising the stakes considerably for an employer.
Full article by Chad Terhune on this new proposed legislation in the LA Times.
If employers are willing to offer their workers health coverage and wish to use stop-loss as protection, I don’t really believe it should be up to the state to tell them they can’t.
I have an idea. If states want to ban stop-loss coverage below $100K, by don’t employers just refuse to hire workers who are not healthy? Better yet, pay wokers slightly better than average and tell them to buy their own insurance.
I agree with Devon. This is another regulation that will add to the burden on small businesses.
Also undercutting the notion of insurance – low deductibles and copays, using insurance to pay for routine things, etc.
Conceptually, insurance should ONLY be for things that are that expensive, cheaper things should be self funded.
This should be called the “Let’s make insurance unaffordable for everyone” act.
Howard L / There is no outstanding bill. Either his inurnasce was canceled and he is driving illegally or he paid in advance for the coverage and only hasn’t paid the request for renewal bill. Insurance companies to not give you inurnasce on credit.