Obamacare

[Oh so SIMPLE]

Obamacare requires coverage be provided by employers with some exceptions.

There are 4 configurations of coverage, specifying the amount of annual deductible that the employee will face.

Has there been any indication from the government whether the employer can purchase a higher deductible policy and couple it with a buy-down (MERP) so that the net coverage to the employee is the same as if it were just the lower deductible policy?

[Guest Benefits Broker CO]

There isn't really an "employer mandate". There will, however, be a penalty incurred by the employer in certain circumstances.

[Oh so SIMPLE]

There isn't really an "employer mandate". There will, however, be a penalty incurred by the employer in certain circumstances.

Okay--to avoid the penalty when applicable, will the penalty-avoidance coverage have to be entirely provided through an insurance policy or will the employer be able to avoid the penalty by providing insurance with a higher deductible and a MERP buy-down so that the net effect for the employee will be the penalty-avoidance coverage?

[masteff]

So I'm presuming your broader question is "has there been any guidance yet on how health reform will impact high deductible plans and MERPs?" Not that I've seen but I didn't look for it until you asked. I'm not aware of either being explicitly revoked by the reform bills.

This article from SHRM hits some good points on how reform may impact HDHPs.

http://www.shrm.org/publications/hrnews/pa...erdirected.aspx

[Guest Nate Ogden - OBA]

Obamacare requires coverage be provided by employers with some exceptions.

There are 4 configurations of coverage, specifying the amount of annual deductible that the employee will face.

Has there been any indication from the government whether the employer can purchase a higher deductible policy and couple it with a buy-down (MERP) so that the net coverage to the employee is the same as if it were just the lower deductible policy?

From what I have read no they can not. Reform regualtes the plans carriers can sell as I read it. I don't think you will find many carriers selling $2501+ plans when/if it kicks in. My opinion most carriers wouldn't be selling them today if they didn't have to becuase of competition, BUCA couldn't survive on 15-20% of a $5000 plan and meet loss ratio requirements.

Great example of how politicians ruin effective solutions becuase they don't understand what they are doing. They should have regulated the benefits delivered not limit how they are sold.

I have 600 groups I need to find a solution for, so far the $5000 specific deductible has been very hit & miss with a lot more miss then hit.