Welle Discusses Proposed Alternatives to Group Health Coverage
January 23, 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
July 24, 2025
In the News
Foley's Trial Team Featured Following Landmark Victory in Texas Trade Secret Case
Foley & Lardner LLP’s recent landmark appellate victory in a Texas trade secrets case is featured in the Texas Lawyer article, "Ruling Sets Precedent for Employment, Trade Secrets, Fiduciary Duty."
July 24, 2025
In the News
Gregory Husisian and David Simon on Tariff Evasion – 'Huge money at stake'
Foley & Lardner LLP partners Gregory Husisian and David Simon detailed the rise and risks of tariff evasion in the POLITICO article, "As Trump raises tariffs, companies find ways to cheat — and risk getting caught."
July 23, 2025
In the News
Aaron Maguregui on AI Scribes in Health Care – 'Technically, it's a third party listening'
Foley & Lardner LLP partner Aaron Maguregui shared insights on the growing applications for artificial intelligence across health care in the healthleaders article, “Is Your AI Scribe HIPAA-Compliant?“