Does ACA ("Obamacare") 'penalize' companies for offering to much coverage??

[Paula Sims]

Hi there,
A co-worker of mine was speaking to one of our HR officers and she said that he told her that, because of the ACA, they have to cut down some of their benefits because there's a cap and offering too much can get them/us penalized.

I thank God every day I have great insurance and it's gotten us through some very very rough times. However, is this true? I do know that she's not quite politically saavy and such "details" are really beyond her, but is there any truth to it?

Thanks

Paula

[JVS]

1. Maybe they're interpreting the tax on "cadillac plans" as a penalty.

[elleng]

2. There's a 'cap' on the amount insurance companies can charge

above the amount they actually spend on providing benefits.

[Yo_Mama]

3. Yes, there will be a limit on plan coverage

There are some exceptions, such as for plans that cover an older pool of people, but all companies not only have to deal with the mandated minimum but the mandated maximums.

Here's a write up about it:
http://www.mcgrathinsurance.com/node/150

[JVS]

4. Ok, I think I found what they're talking about

Effective by January 1, 2018
All existing health insurance plans must cover approved preventive care and checkups without co-payment.[42]
A 40% excise tax on high cost ("Cadillac&quot insurance plans is introduced. The tax (as amended by the reconciliation bill)[146] is on insurance premiums in excess of $27,500 (family plans) and $10,200 (individual plans), and it is increased to $30,950 (family) and $11,850 (individual) for retirees and employees in high risk professions.

http://en.wikipedia.org/wiki/Patient_Protection_and_Affordable_Care_Act#Effective_by_January_1.2C_2018

So if you provide more than $850/month worth of insurance to an employee, 40% of ever dollar over $850 gets taken away.

[Paula Sims]

5. Thanks everyone -- appreciate the insight and the research

Didn't quite know where to begin. I'd really hate our benefits to be cut because they've save me and my husband so many times. And yes, I KNOW I have it good and I'm thankful for it. I'm even willing to pay the tax myself if we can continue the same level of coverage. We don't make a lot of money and our monthly out of pocket is around $500 so it's quite a pinch but we're willing to take it if things stay the same.

I am happy for those that could not afford insurance, especially those with pre-existings (several in my case, including being a female), but am worried in my case because the treatments that are just beginning to help are the expensive ones.

Appreciate the help

Paula