58% of Americans earning less than 400% of the Federal Poverty Level qualify for free health care. Most plan sponsors have failed to recognize the impact this would have on their second most expensive business expense after salaries if they would simply transfer risk through IRC 501r hospital financial assistance policies.
An 800 life case in Houston, Texas has recognized the concept as a means to transfer 100% of their hospital expense risk for their employees. All 800 employees earn less than 400% of the federal poverty level and qualify for free hospital care at many Houston hospitals. One hospital with the most favorable IRC 501r policy has become the plan’s choice of where plan members must go for care.
More plan sponsors like this one are wondering why pay for health insurance for those that don’t need it?