Roll Call: Latest News on Capitol Hill, Congress, Politics and Elections
September 18, 2014

Obamacare ‘Quirk’ Allows Cheap Health Plans to Slip Through

Thanks to a quirk in the Affordable Care Act, some companies will be able to keep bare-bones insurance plans for their employees, reports the Wall Street Journal.

“What makes it possible under the health law: As long as companies offer at least one plan that complies with the law’s requirements, they are free to keep offering ones that don’t.”

“That has enabled companies to find ways to comply with the law while minimizing increases in their health-care costs. The result has been an increase in lean insurance offerings such as ‘fixed-indemnity’ plans.”

“Fixed-indemnity coverage ‘violates the spirit of the law,’ said Jay Angoff, a Washington lawyer who previously headed the federal insurance-oversight office … ‘There’s a strong argument that it is inherently misleading, and it provides so little coverage that it shouldn’t be sold at all. [Such plans] were never intended to survive past 2014.'”

Comments (0)

No comments just yet.

Sign In

Forgot password?

Or

Subscribe

Receive daily coverage of the people, politics and personality of Capitol Hill.

Subscription | Free Trial

Logging you in. One moment, please...