Is Exchange Dumping Illegal?


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:

Editor’s Note: Mulebriar is a lifetime resident of Waring, Texas.