Skip to comments.“Bare-bones” employer health insurance plans coming thanks to #ObamaCare
Posted on 05/22/2013 3:23:15 AM PDT by 2ndDivisionVet
The Wall Street Journal reports on what National Review Onlines Veronique de Rugy calls one more in the law of unintended consequences to the implementation of our Presidents signature law ObamaCare (via Memeorandum -bolded emphasis added by me):
"Employers are increasingly recognizing they may be able to avoid certain penalties under the federal health law by offering very limited plans that can lack key benefits such as hospital coverage.
Benefits advisers and insurance brokersbucking a commonly held expectation that the law would broadly enrich benefitsare pitching these low-benefit plans around the country. They cover minimal requirements such as preventive services, but often little more. Some of the plans wouldnt cover surgery, X-rays or prenatal care at all. Others will be paired with limited packages to cover additional services, for instance, $100 a day for a hospital visit.
Federal officials say this type of plan, in concept, would appear to qualify as acceptable minimum coverage under the law, and let most employers avoid an across-the-workforce $2,000-per-worker penalty for firms that offer nothing. Employers could still face other penalties they anticipate would be far less costly.
It is unclear how many employers will adopt the strategy, but a handful of companies have signed on and an industry is sprouting around the tactic. More than a dozen brokers and benefit-administrators in 10 states said they were discussing the strategy with their clients.
There had to be a way out of the penalty for employers with low-wage workers, said Todd Dorton, a consultant and broker for Gallagher Benefit Services Inc., a unit of Arthur J. Gallagher & Co., who has enrolled several employers in the limited plans.
Pan-American Life Insurance Group Inc. has promoted a package including bare-bones plans, according to brokers in California, Kansas and other states and company documents. Carlo Mulvenna, an executive at New Orleans-based Pan-American, confirmed the firm is developing these types of products, and said it would adjust them as regulators clarify the law.
The idea that such plans would be allowable under the law has emerged only recently. Some benefits advisers still feel they could face regulatory uncertainty. The law requires employers with 50 or more workers to offer coverage to their workers or pay a penalty. Many employers and benefits experts have understood the rules to require robust insurance, covering a list of essential benefits such as mental-health services and a high percentage of workers overall costs. Many employers, particularly in low-wage industries, worry about whether theyor their workerscan afford it.
But a close reading of the rules makes it clear that those mandates affect only plans sponsored by insurers that are sold to small businesses and individuals, federal officials confirm. That affects only about 30 million of the more than 160 million people with private insurance, including 19 million people covered by employers, according to a Citigroup Inc. report. Larger employers, generally with more than 50 workers, need cover only preventive services, without a lifetime or annual dollar-value limit, in order to avoid the across-the-workforce penalty."
What.a.surprise. Not. Hate to say Toldjah So but in this instance its well-worth reminding people. Heck, most of us Toldjah So with respect to this law long before it passed via lots of strong-arming and the backroom arm twisting and political promises that candidate Obama, when first running for the highest office in the land, told us he couldnt stand tactics he would seek to change. Riiiight.
All that glitters is not gold and, in fact, you didnt even have to read the fine print in the Affordable Care Act to figure out what a monstrous, disastrous, unhealthy law this was for our nation and its people. Hours are being cut, full time employee status types are changing to part time, jobs are being lost, employer plan coverages all across the country are changing to either being unaffordable or worthless to the average workaday Jane and Joe, and no in many instances people have NOT been able to KEEP THEIR PRIMARY CARE PHYSICIANS as a result of the passage of this law one of the biggest whoppers told about this bill early on by its proponents. Employer health plan offerings as we know them are changing and not for the better. This is, of course, in keeping with our President and his partys ultimate goal: single payer health care coverage.
You got what you asked for, 51%. Too bad the rest of us have to suffer long-term for your woefully ill-informed decision to not only vote our celebrity President in the first time, but also for being clueless enough to turn around and do it again.
Will they ever learn?
I do cross fit. Trust me it gets you into shape and wears you out. Plus I do about 15 - 20 miles a week walking and/or jogging. It knocked about 30 lbs off me and my wife irsnt want me to lose anymore though I’d like to take another 10 - 15 off...
I thought the only plans available were the ones that included coverage of things mandated by Obama?
I feel for you and the other physicians who are having their careers ruined by this law.
Some years ago my grand nephew was intent on becoming a doctor, but because his finely-tuned political antennae told him that there was a good chance that we would have socialized medicine in the near future, he changed his mind and became an engineer instead.
Yes, but they apparently only mandated the stuff that they were concerned about and didn’t mandate that insurance remain as it is. Letter of the law. Must have free mammograms and contraception. No law says they have to pay for hospitalization.
And yes, it is illegal to just have a high-deductible catastrophic insurance plan. It must cover all the free stuff.
That is not going to happen, it is not a free market with obamacare, Medicare, Medicaid etc... Prices will continue to climb.
Move to Cuba. You’ll get the socialized medicine you are asking for.
What sort of blooming idiot are you? Employers dropping hospitalization is under discussion, which is a direct result of Obamacare.
If employers reduce benefits they’ll lose their best employees to companies that don’t. Basic capitalism. Maybe you “feel” that people should just sit and take it, and be happy with whatever?
Sounds pretty socialist of you. So, you move to Cuba. You’ll find what you’re looking for through the haze of your confusion.
Accepting your number that medical costs are going up 10% per year, that is a VERY good thing if we are getting what we pay for.
Only for those who can pay, besides, most of the increase goes to lawyers and other parasites.
It’s not just the government money, even insurance takes away the emphasis on getting good value for medical payments.
Maybe you are unaware that the whole employer-supplied health insurance thing is an unintended consequence of tax law changes in the Fifties. I stand behind my comment: pay for your healthcare, or move to a country where the government will steal at gunpoint from your fellow citizens to pay for you.
You are bombastic, ignorant and proud of it. Compensation is compensation, whatever the form. Reduce it, lose good employees.
You’re working a temp job with no benefits and resent anyone else having them, I take it? How Soviet of you. Them’s Russians now, by the way.
Okay, I’ll humor you: you can work for me. I will pay you a basic salary and I will “pay for” your health insurance on top of it; or, I can allow you to buy it yourself, and I will pay you the money I would have spent on your insurance.
Which would you choose? It’s all the same to me.
You have identified one of the reasons the US healthcare system got to the crazy place it is.
Health benefits were not taxed as income.
So it became very common for employers to offer them.
Tying “healthcare” to employment broke the connection between cost and the actual consumer of the service.
I suggest you work your way up to paying for your own first.
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