Obamacare supporter shocked that employers moving to bare bones coverage

Jazz Shaw @ Hot Air:

Over at National Review, Veronique de Rugy highlights a recent Wall Street Journal article which brings home yet again the law of unintended consequences. (Assuming that the consequences of Obamacare are “unintended” based on the Pelosi theory of needing to pass the bill to find out what’s in it.) The short version of the analysis – and I know this will come as a massive shock to many of you – shows that employers will flock to lower cost, bare bones medical plans to avoid the increased costs and mandates of Obamacare, turning implementation into even more of “a train wreck”. Yes… yes… I know. Who could possibly have seen this coming?

Benefits advisers and insurance brokers—bucking a commonly held expectation that the law would broadly enrich benefits—are pitching these low-benefit plans around the country. They cover minimal requirements such as preventive services, but often little more. Some of the plans wouldn’t cover surgery, X-rays or prenatal care at all. Others will be paired with limited packages to cover additional services, for instance, $100 a day for a hospital visit.

Federal officials say this type of plan, in concept, would appear to qualify as acceptable minimum coverage under the law, and let most employers avoid an across-the-workforce $2,000-per-worker penalty for firms that offer nothing. Employers could still face other penalties they anticipate would be far less costly.

The explanation here isn’t exactly long division. As employers seek to obtain plans which will meet the new mandate without busting their budgets, they will bring on bare bones, low premium plans which qualify.

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