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Monday, February 18, 2013

Another blow to ObamaCare: The increasing appeal of self-insurance

Links and more comments at HotAir.

It’s been a fairly frequent practice for larger companies to self-insure, i.e., take on most of the financial risks of providing health benefits to their employees sans traditional insurance programs and the accompanying premiums, and instead only signing up for “stop-loss” insurance to protect themselves against the possibility of really major health-care costs (the sort that come with long-term debilitating diseases or sudden catastrophe). It’s a trend that’s been gaining some steam over the past decade or so, but certain aspects of ObamaCare mean it is becoming more worthwhile for even more and even smaller companies to consider the option for themselves — especially if they have younger, typically healthier workforces.

That means that instead of the costs of ObamaCare being [re]distributed across a wider pool, the price of premiums is going to grow larger for people who stay in the system as more and more companies consider opting out.

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