Wednesday, October 22, 2014

Employers push low-wage workers onto Medicaid and "skinny plans" under Obamacare, quite legally


Some employers are putting low-wage employees on Medicaid to avoid Obamacare penalties, according to a front-page story in the Wall Street Journal Wednesday by Anna Wilde Mathews and Julie Jargon, link here.  This practice obviously makes the companies a political flash point with both conservatives and liberals.  It may also increase the use of state-run MMIS systems, and require more systems development to support the practice.

  

Companies are offering “skinny plans”, that may not offer meaningful hospitalization coverage.  And companies that offer plans risk some fines based on employees who receive subsidies for signing up for full Obamacare plans on their own.  Major insurance companies are aggressively selling these plans because they have an incentive to do so.  

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