Welle Discusses Proposed Alternatives to Group Health Coverage
23 January 2019
Corporate Counsel
Senior Counsel Nick Welle was quoted in an article in Corporate Counsel, “Will Some Employers Be Allowed to Stop Offering Group Health Coverage Under the ACA? Stay Tuned,” about proposed new rules that would allow some employers to set up health reimbursement arrangements to help employees buy individual health insurance policies rather than provide group coverage.
Welle said the proposed new rules, which wouldn’t take effect until at least Jan. 1, 2020, would theoretically allow employers, for the first time ever, to fully satisfy the Affordable Care Act’s employer mandate without offering group major medical coverage for their employees. But he believes most large employers would probably continue to offer group health plans because they provide employers with a valuable recruitment incentive.
“Very large employers, sophisticated Fortune 500 companies, are going to want to keep group health plans to attract and retain talent,” he said. “The individual market and the government exchange is just so much inconsistency with the switch from a Democratic to Republican administration, there are a lot of unknowns. The larger, sophisticated employers will say they are not comfortable telling their employees to go to the individual marketplace.”
Welle said the proposed new rules, which wouldn’t take effect until at least Jan. 1, 2020, would theoretically allow employers, for the first time ever, to fully satisfy the Affordable Care Act’s employer mandate without offering group major medical coverage for their employees. But he believes most large employers would probably continue to offer group health plans because they provide employers with a valuable recruitment incentive.
“Very large employers, sophisticated Fortune 500 companies, are going to want to keep group health plans to attract and retain talent,” he said. “The individual market and the government exchange is just so much inconsistency with the switch from a Democratic to Republican administration, there are a lot of unknowns. The larger, sophisticated employers will say they are not comfortable telling their employees to go to the individual marketplace.”
People
Related News
06 February 2025
In the News
Vanessa Miller Assesses Panama Canal Discourse
Foley & Lardner LLP partner Vanessa Miller commented in SupplyChainBrain article, "The Fight for Control of the Panama Canal," lending important context to the recent headlines over the important waterway.
06 February 2025
In the News
Gregory Husisian Weighs in on Suspension of De Minimis Trade Exemption
Foley & Lardner LLP partner Gregory Husisian offered context on President Trump's recent trade actions on China in The Wall Street Journal article, "Why Trump Is Closing a Trade Exemption for China."
04 February 2025
In the News
Andrew Wronski on Tariff Fluidity – 'Keep on top of the issues'
Foley & Lardner LLP partner Andrew Wronski assessed the evolving shift in U.S. trade policy in the Milwaukee Business Journal article, "Trump tariffs won't disappear — so how should Wisconsin businesses prepare?"