By Molly Mulebriar
In a Memorandum issued 6 November 2014 the Department of Labor’s Benefit Security Administration issued their opinion that I believe effectively prevents an employer from Exchange Dumping.
The basis of the department’s stance is the discrimination issue. “…..offering only to employees with a high claims risk, a choice between enrollment in the standard group health plan or cash, constitutes such discrimination………in the department’s view, cash-or-coverage arrangements offered only to employees with a high claims risk are not permissible benign discrimination.”
See Memorandum here:
The Department of Labor’s Employee Benefits Security Administration updated its Affordable Care Act web page with the following:
- Affordable Care Act Implementation FAQs Part XXII, available athttp://www.dol.gov/ebsa/faqs/faq-aca22.html
- Technical Release 2014-01 – Guidance on State regulation of stop-loss insurance, available athttp://www.dol.gov/ebsa/newsroom/tr14-01.html
Editor’s Note: Mulebriar is a lifetime resident of Waring, Texas. www.MollyMulebriar.org