Some companies are considering self-insuring their workers to avoid onerous provisions of the Affordable Care Act (such as higher premium prices). MedPageToday has some details:
Self-insured firms finance most worker health costs and buy “stop-loss” reinsurance to cover especially high claims. Self-insurance has typically been the realm of large employers. But Kaiser Health News has reported brisk interest by small companies exploring self coverage.Stop-loss coverage that kicks in as low as $10,000 or $20,000 per worker makes self-insurance an option for firms with as few as 20 or 30 on staff, brokers say. Yet advocates of the law worry that more small firms with young, healthy employees will self-insure next year, exploiting what some see as an ACA loophole and leaving small-group insurance pools with sicker members and higher costs.