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Some See Self-Funding By Small Businesses As "Threat" To ACA

03/18/13

  10:42:51 am, by MedBen5   , 148 words,  
Categories: News, Health Plan Management

Some See Self-Funding By Small Businesses As "Threat" To ACA

“NorthBay Adventure is the kind of small business that could be expected to buy medical insurance for workers under sweeping health-act rules taking effect in 2014. But executive director George Comfort says that’s not likely to happen.

“Instead, NorthBay became self-insured last year, paying most of its workers’ health costs directly, a practice more typical of large employers. The decision to self-insure was about free choice, savings and what’s best for his company, Comfort says.

“But others see it as a threat to the Affordable Care Act. As more small employers like NorthBay avoid the health act’s requirements through self-coverage, small-business marketplaces intended to cover millions of Americans could break down and become unaffordable, they say.”

Is self-funding by small businesses a smart way to benefit from a healthy workforce or, as some claim, a way to “game” the system? Read more at Kaiser Health News.

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