Skimpy Plans Are Legal under ObamaCare
Proposed and final rules issued this spring surprised many by failing to bar large employers from offering insurance policies that could exclude benefits such as hospitalization.
Offering bare-bones policies may result in some fines, but that expense could be less than the cost of offering traditional medical coverage…
[I]f employers don’t offer “comprehensive” policies — defined as covering at least 60 percent of health expenses — they must pay $3,000 for each worker who receives subsidies to buy coverage. Opinions differ on whether skinny plans will be able to pass the comprehensive test; some regulations are still pending. But employers see that potential expense as far lower than the cost of offering all their workers more robust coverage, experts said.
Some businesses are also betting that few workers will go to the government-run marketplaces to seek subsidized coverage, opting instead for the skinny plan “which costs less than the penalty,” said Dania Palanker, senior counsel for the National Women’s Law Center in Washington, D.C. (Kaiser Health News)
I hope insurers are able to offer HSAs or HRAs in the exchange. If people were able to build up accounts, they would never be willing to give them up.
“But employers see that potential expense as far lower than the cost of offering all their workers more robust coverage, experts said.”
Businesses can’t afford the increase in costs.
“Some businesses are also betting that few workers will go to the government-run marketplaces to seek subsidized coverage, opting instead for the skinny plan…”
Workers can’t afford the decrease in quality of the exchanges. How bad are these exchanges going to be?
Pretty Bad Dewaine, Pretty Bad.
So, what, we’re looking at poorer quality at a higher price? Good job, Obama.
The way that we talk about health care now, I don’t know if we’ll have a good system for a long time. Our whole mindset needs to change. The “moral” belief that health care is a right will continue to increase costs and decrease quality.
More education parallels?
Good point. Both are following similar patterns.
How can you say that healthcare isn’t a right? Isn’t it an extension of the right to Life?
How can you say that healthcare isn’t a right? Isn’t it an extension of the right to Life?
It isn’t Obama’s fault. Obamacare has been changed and perverted after Obama proposed it.
I don’t think that this author understands the difference between the regulation of self-funded and insured plans.
OCare regulates the heck out of plans that states formerly regulated, basically taking over the individual and small business market with essential benefits and whatnot, but it doesn’t say much about self-funded (generally ERISA) plans. Those were the immutable standard that its authors were trying to force everyone else to have. They apparently lacked the imagination to understand that the employer universe would change in response to their heavy handed fines and regulation.
Some of the things that don’t apply to self-funded plans include deductible limits, essential health benefits, comprehensive coverage, and administrative simplification.
They have to cover certain preventive health services, but it says nothing about the kind of comprehensive coverage required of plans offed by health insurers and plans. Thus, an employer can offer $100 a day for hospital coverage and do something like have a contract for routine preventive care and immunizations from the local urgent care center, be in compliance, and avoid the fines.