Dive Brief:
- In a recent survey of 136 large employers, the National Business Group on Health found that 16% of respondents will be offering "skinny" health plans—ones that do not meet Affordable Care Act standards—in 2015 along with ones that do meet the requirements.
- By offering these lower-cost plans, employers are able to avoid ACA penalties. Employees are also able to avoid purchasing coverage on the exchange even though they are purchasing high-deductible, minimum-coverage plans that would otherwise not meet ACA criteria.
- The industries in which this is happening were not isolated, but it is assumed that many of the employers offering these plans are in sectors like hospitality where there are a high number of low-wage workers. One drawback to the practice is that employers are disqualifying this group from getting subsidies on the exchanges because they offer at least one plan that is ACA-compliant (even if the employee chooses one that is not).
Dive Insight:
Many are blaming the movement toward consumer-directed, minimum benefit plans on the ACA and its mandates. That may be part of the cause, but this evolution began before the ACA took hold. According to the Kaiser Family Foundation, in 2006, only 10% of workers on employer plans had deductibles of $1,000 or higher. That number jumped to 34% by 2012. During that same time the average deductible rose from $584 to $1,097.
The National Business Group survey found that 32% of companies intend to offer only consumer-directed plans. This is a clear sign that employers are putting more of the onus on individuals to choose where to receive care and then pay their medical. For consumers, this could mean a continued trend toward choosing low-cost services or putting off care. For providers, it will mean a greater need for transparency and cost-consciousness and higher numbers of self-pay patients.