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 brokers—bucking a commonly held expectation that the law would broadly enrich benefits—are pitching these low-benefit plans around the country.
This, of course, is backwards. The coverages here should be paid out of pocket. The better policy would cover only catastrophic events—like hospitalization.
Then there’s this:
[E]mployers 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….
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.
The money-saving bare bones policies are only available to large companies. The jobs producers remain stuck with the expensive, overwrought mandated policies that they cannot afford. Nor can they afford the penalties Obamacare exacts for not affording them.
And this from Kansas Insurance Department Special Counsel Linda Sheppard:
The whole idea is to get healthy people in and not-so-healthy people in.
Never mind that healthy people don’t need to be in, since they don’t need the coverage, and so they shouldn’t be being forced in.