Obama Scared By Self-Funded Insurance Plans

Published on July 30, 2013

By Patrick Howley, Daily Caller

Republicans on Capitol Hill say the Obama administration is trying to  regulate or prevent small companies from  providing self-funded insurance for their employees because self-funded  insurance plans could be the “Achilles heel” for Obamacare implementation.

The majority of U.S. employers now offer self-funded insurance plans, in  which companies finance employee health  plans from their own funds. Many of the companies purchase stop-loss insurance  plans from insurance providers. These companies would therefore avoid many  Obamacare regulations when the law takes full effect in 2014. The practice of  self-funded insurance, which was outright banned in early drafts of Obamacare,  represents the “Achilles heel” for Obamacare implementation, according to  insiders.

Phyllis Borzi, the Obama administration’s assistant secretary for employee  benefits security in  the Department of Labor, is a well-known opponent of stop-loss insurance and is  suspected of making behind-the-scenes moves to prevent small companies from  providing it, according to Washington insiders. The Department of Health and  Human Services is capable of implementing new regulations on self-funded  insurance on a federal level.

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