by Tom aka Rusty Rustbelt
Health Care Thoughts: Innovation is Good Except….
…. when it is not politically correct. For a long time large employers have used self-funded insurance plans backed up by stop-loss insurance for large claims. I have worked with employer plans down to the 100 employee size. Now small employers are trying to cope with fast rising conventional premiums by using self-employed plans with lower dollar stop-loss coverage. Insurance companies are crafting plans for smaller businesses.
Well! California politicians and bureaucrats want to outlaw these plans, not because the plans are necessarily bad for small business or employees, but because the plans do not meet the spirit and needs of PPACA. This insurance coverage is not politically correct. Some big insurers support the state because they might lose market share in the small business market (the holiest of motives of course).
Prediction: Eventually small business employers will get sick of this and dump employees on state exchanges, assuming the exchanges can be organized and operated. Writing legislation is easy. Implementing PPACA is not so easy.
HT: L.A. Times