Tuesday, July 12, 2011

States can let large employers tap health insurance exchanges

WASHINGTON—States have the authority to decide whether large employers can purchase coverage through new state health insurance exchanges starting in 2017, according to health care reform regulations that were issued Monday.

The exchanges are a pivotal part of the Patient Protection and Affordable Care Act. Starting in 2014, they will be available to individuals, especially those eligible for federal health insurance premium subsidies, and employers with 100 or fewer employees. States, though, can until 2016 limit employer participation in the exchanges to organizations with up to 50 employees.

Defining ‘large’ employer

Starting in 2017, states can open the exchanges to employers with more than 100 employees, according to regulations issued Monday by the Department of Health and Human Services. However, the rules do give states the authority to define the conditions, such as number of employees, under which larger employers can buy coverage through the exchanges.

“The scope of the term qualified employer is expected to vary among states and over time,” according to the regulations.

“What is a large employer could well vary by state,” said Paul Dennett, senior vp-health care reform with the American Benefits Council in Washington.

The regulations do not address whether employers with early retiree health care plans could obtain coverage through the exchanges or the extent to which employers could pay a share of the retirees’ premiums.

That issue, benefit lobbyists say, is likely to be addressed in future regulations yet this year.

To view the original article click here.

To view the regultion click here.