Effective Jan. 1 of this year, the Affordable Care Act requires small-group plans to provide 10 “essential benefits.” Many employers renewed their plans late last year to avoid that costly requirement as long as possible. But as the months pass, these plans will expire — and employers will be tempted to drop coverage altogether, rather than pay for those costly added benefits.
And those dropped employees will be stuck with ObamaCare-exchange plans or no insurance at all.
Yet an exchange plan is a ripoff compared with what they’re losing.
On average, US workers with on-the-job individual coverage contribute $999 a year in pre-tax dollars and have a deductible of $1,135, according to the Kaiser Family Foundation. On ObamaCare exchanges, all but the lowest earners will pay more (even after subsidies), pay with after-tax dollars, face deductibles of $3,000 to $5,000 for silver and bronze plans and lose access to many doctors and hospitals they’re covered for now.