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Employee Coverage and Self-funded Savings -- So Where's The "Threat"?


  04:21:02 pm, by MedBen5   , 214 words,  
Categories: News, Health Plan Management, Health Care Reform

Employee Coverage and Self-funded Savings -- So Where's The "Threat"?

Private sector solutions apparently have no place in today’s brave new health care world, The Wall Street Journal finds:

“[S]elf-insurance is now filtering down to businesses with 199 workers or fewer, as a hedge against ObamaCare’s federal mandates and the danger that costs on its small-business exchanges will soar. Some insurers are now selling popular products that allow groups as small as 25 to self-insure. [Editor’s note: Groups with as few as 20 employees can partially self-fund with MedBen Split Solution.] In a 2012 study, the Urban Institute found ObamaCare’s incentives will cause as many as 60% of small firms to convert without regulatory changes.

the White House, liberal pressure groups and state and federal regulators are trying to close what they call the self-insurance ‘loophole’ before more escape. Their political and actuarial fear is that if enough businesses don’t join, the exchanges could fail because too few younger and healthier people will subsidize everybody else.

“In a June alarm titled ‘The Threat of Self-Insured Plans Among Small Businesses,’ the liberal Center for American Progress warns that ‘the result of this shift could cause an insurance premium death spiral.’ Note how businesses that pay for their workers’ health care are suddenly a ‘threat.’ Wasn’t coverage the point of ObamaCare?”


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