Friday, March 30, 2012

Speaking of Healthcare Reform: Protect Employees of Self-Insured Companies

If you have health coverage through your employer, and your employer self-insures and goes bankrupt, you could wind up being for the bill. I'm not an expert here, I think the intent of ERISA is to prevent this from happening, but it doesn't always do that (you can't get blood from a bankrupt stone).

This strikes me as unfair and wrong. The employee has absolutely no control over this, it is completely arbitrary, and if it happened at the wrong time, could be a complete disaster. I think employees of self-insured companies should be indemnified or insulated in some way. Either the self-insured employer should have to buy backup reinsurance, or the providers that accept the insurance plan should be required to indemnify patients.

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