Employers Offering 'Skinny' Coverage to Avoid High Obamacare Fines

Image: Employers Offering 'Skinny' Coverage to Avoid High Obamacare Fines Basics such as X-rays will not be covered under many employers' minimal-coverage healthcare plans.

Monday, 20 May 2013 09:44 AM

By Sandy Fitzgerald

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Some companies are avoiding Obamacare penalties by offering "skinny" insurance plans that provide employees with minimum coverage such as preventive care but little else, including benefits to help cover hospitals stays.

Minimum coverage qualifies as acceptable under the new healthcare-reform law, so benefit advisers and insurance brokers are pitching minimum plans nationally, reports the Wall Street Journal.

Employers are recognizing they can avoid a $2,000-per-worker penalty by providing such policies, even though the plans often don't cover basics such as surgery, X-rays, or prenatal care, let alone hospitalization.

The employers still could face penalties, but they expect them to be less than the the $2,000 per worker for opting out of Obamacare. As a result, the Journal reported, more companies are seeking minimum-coverage plans and creating what amounts to a new industry of basic-insurance brokers and benefit administrators pushing the plans to clients.

Some low-benefit plans will cost employers as little as $40 to $100 per employee monthly, the Journal noted.

"For certain organizations, it may be an ideal solution to minimize the cost of opting out," David Ellis, chief executive of Youngtown, Ariz.-based LifeStream Complete Senior Living, told the Journal.

Ellis said his firm, which employs about 350 people, may consider the low-benefit plan in order to comply with the law.

Department of Health and Human Services officials say they have seen little evidence of companies switching to the skinny plans, and that most employers are choosing to provide better benefits.

In addition, the limited plans may not appeal to all workers – and could backfire on employers.

While they would avoid the $2,000 fine, they still could be fined $3,000 for each employee who chooses not to take the company coverage and buys insurance through a state healthcare exchange.




© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Limbaugh Back After Week Off for Second Cochlear Implant

Thursday, 24 Apr 2014 22:58 PM

Talk show host Rush Limbaugh is back on the airwaves after taking a week off to have surgery for a second cochlear impla . . .

Retired Justice Stevens: Time to Legalize Marijuana

Thursday, 24 Apr 2014 21:42 PM

It's time for the federal government to legalize marijuana, as public opinion is changing and the distinction between m . . .

Another Obamacare Deadline Extended

Thursday, 24 Apr 2014 21:20 PM

The deadline for enrolling in healthcare plans through the Obamacare program has been extended again, this time to June  . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

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