Nothing is forever. Not even a group health insurance plan. Cost has a limit. Sustainability is a constant.
“The government says we must have an unlimited lifetime maximum health insurance plan. Our plan must do that!”
Yes and No.
Yes as long as the money lasts
No, you can place an aggregate policy limit as is common with certain casualty policies. No plan sponsor, insurance company, Fortune 500 company or anyone else has unlimited funds. Except Uncle Sam (He’s the culprit who mandated unlimited lifetime benefit maximums – Go Figure!)
It’s illegal to print money.
So what happens when the aggregate limit is reached? Are plan members left out in the cold with no insurance to rely on?
Yes, and…………..
No. The plan sponsor can establish an ICHRA plan, freezing their cost, while guaranteeing immediate continued coverage of all pre-existing conditions.
Why not just do an ICHRA and be done with it?
