Auto Insurance Houston
English Insurance Carriers

The Beginning of the End of Employer-based Health Care?

Health reform has, thus far, produced several unintended consequences. As a result, legislators are scrambling to stave off more public backlash.  The recent wave of exemptions granted by Congress to major corporations like McDonalds and Home Depot may only be a postponement of what appears to be an intended consequence of health insurance reform. The corporations argue that the new requirements may force them to drop insurance coverage for thousands of low wage workers.

If these companies ultimately cease providing what is called "mini-med" coverage, also known as limited benefit plans, then tens of thousands of workers will be absorbed by the new Medicaid exchanges set to open in 2014 – well after the next presidential election.

New Ratio Unrealistic to Meet for Limited Benefit Insurance Plans

At issue for these companies is the new medical loss ratio that requires companies to spend at least 80% to 85% of their premium dollars on actual medical benefits, which is the law's way of ensuring that employer-sponsored health plans limit the amount of money spent on high executive salaries and administrative costs. The ratio for mini-med plans is skewed towards administrative costs because of the high turnover of low-wage workers and the fact that there is low amount of actual claim expenses. In fact, the average amount of benefits claimed by McDonalds' workers is about $5,000 per year. For $13 a week, a McDonalds' employee can receive a maximum of $2,000 in benefits, which covers 100% of most medical costs except in-patient services, according to Time Magazine. At the higher end, $32 provides $10,000 of benefits.


Share |


No Comments


Post a Comment
Name
Required
E-Mail
Required (Not Displayed)
Comment
Required


All comments are moderated and stripped of HTML.
Submission Validation
Required
CAPTCHA
Change the CAPTCHA codeSpeak the CAPTCHA code
 
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
 Footer
  Personal Insurance
Auto Insurance Houston
Home Insurance Houston
Condo Insurance Houston
Renters Insurance Houston
Motorcycle Insurance
Boat Insurance Houston
Flood Insurance Houston
Health Insurance
Life Insurance
Texas SR-22 Insurance
Texas RV Insurance
Texas Umbrella Insurance
Commercial Insurance
Commercial Auto Insurance
General Liability Insurance
Commercial Property Insurance
Tenant Liability Insurance
Landlord Risk Insurance
Texas Workers Compensation Insurance
Texas Garage Liability Insurance
Texas Auto Dealer Insurance

Surety & Fidelity Bonds
Auto Dealer Bond
Auto Title Bond
Dishonesty Bond
Tax Bond
TABC Liquor Bond
License & Permit Bond 
Links
HAR.com
HCAD.org
Bankrate.com
DMV.org
Texas.gov 
 

© 2010 ABC Insurance Services Inc, All rights reserved.
8811 Westheimer Ste 211, Houston, Texas 77063 | (Phone) 800-374-9227 | (Fax) 713-785-2711

Free Houston Texas Insurance Quotes
 Privacy Policy