Can What A Large Employer Does For Obamacare Affect A Small Business?


BudgetI just read, “Employers Eye Moving Sickest Workers To Insurance Exchanges” by Kaiser Health News.

The article warns of a practice, commonly known as, “Dumping.”   It is the “Evil Twin” to the risk management concept of Risk Transfer.

Hospitals used to do it, before it became public knowledge.  They would stabilize an uninsured patient, according to law, and then transfer that patient when they found out that they did not have access to a health insurance company’s “Deep Pockets”

The KHN article outlines how the potential scam would work.  The sad thing is that it is all legal.

What surprises me even more is that Obama, Reid and Pelossi, who are supposed to be some of the brightest minds in the nation, did not anticipate that Americans would look for every little loop-hole that was available in over 900 pages of the law they forced down our throats.

Its as if they, in their arrogance, forgot that CEOs of large companies are smart too.

Fully-insured companies cannot legally single out chronically ill employees or their dependents.  However, it looks like larger companies, who have the money to self-insure, may be considering do that very thing.

If they do, it will be employees of smaller, fully-insured companies, the self-employed and every other American who has to buy their own health insurance who will pay.

It is too late for this practice to have much affect on health insurance premiums for 2015.  Insurance companies, who participate in the federal health insurance exchange, must have their rates submitted to the Department of Health and Human Services in the next few weeks.

However, with the Employer Mandate for large companies starting in 2015, if large, self-insured companies use this strategy in 2014, it could have a major affect on health insurance premiums in 2016.

Non-approved plans

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