Security Firm Drops Coverage, 55,000 Workers Sent to Obamacare Exchanges

Thursday, 26 Sep 2013 04:48 PM

By Andrea Billups

  Comment  |
   Contact Us  |
|  A   A  
  Copy Shortlink
Even the lowest-cost health care plans are being dropped for some 55,000 employees of the nation's largest security guard provider, as it joins the ranks of the large-scale employers moving to insurance exchanges provided under the Obamacare law.

The U.S. branch of Securitas, a Swedish company, offers its employees the sort of minimal health plans that are in place at many companies, but even those are being phased out next year in favor of the government plan, The Wall Street Journal reported.

The "mini-med," plans, which typically only offer basic coverage, often cap employee benefits at $3,000 per year.

"The mini-meds go away and we're not replacing them," Jim McNulty, Securitas' U.S. operation spokesman told the Journal. "Their option is to go to the exchanges."

A July change in the law delaying penalties for a year on employers who don't offer coverage may have changed the minds of corporations on how to proceed on benefits. Securitas had previously planned to give employees a health plan with more benefits that required them to contribute more to opt in, but executives decided instead to focus on moving to 2015 when the federal law kicks in.

Mini-med plans have been used for lower wage employees at companies seeking to offer employees at least some coverage with small co-pays or deductibles required. But they typically don't cover catastrophic health problems, leaving those subscribers in trouble if they face major illness and large medical bills.

Some large U.S. companies are also dropping coverage for part-time employees working less than 30 hours per week. Among them are Home Depot and Trader Joe's.

Trader Joe's had been seen as setting an industry standard by offering such benefits as healthcare, dental and vision to part-time workers. But its CEO said in a memo on Aug. 30, that he was offering those workers $500 in January and steering them to plans available under the federal Affordable Care Act, the Post reported.

Industry analyst Robert Laszewski told Bloomberg "Obamacare is predicated on employers maintaining coverage. It’s supposed to pick up the relatively few people who can’t access health insurance because they’re self-employed or work for small employers who can’t afford it. The big guys were supposed to stay committed.”

Related Stories:

© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact Us  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Krauthammer: GOP Must Push Its Agenda After Taking Senate

Tuesday, 21 Oct 2014 22:07 PM

Republicans have 3-1 odds of taking over the Senate, and they need to use that power to push their agenda, conservative  . . .

Wyoming Gay Couples Get Marriage Licenses

Tuesday, 21 Oct 2014 22:03 PM

Wyoming has become the latest state to allow same-sex unions, bringing the wave of legalizations to a place where the 19 . . .

Alveda King: Obama Proves Skin-Color Voting Doesn't Help Blacks

Tuesday, 21 Oct 2014 21:13 PM

Alveda King, niece of the Rev. Martin Luther King Jr., is at sharp odds with the Rev. Al Sharpton about which political  . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved