Employers no longer have to contribute to the employee cost of insurance?

The Health Insurance Marketplace Navigator Standard Operating Procedures Manual Version 1.0 August 2013 has the following entry (among others) to help “Navigators” work with employers who want to offer employers benefits.


“Step 4. Help employers with setting the amount they wish to contribute to the cost of the QHP…
a. Explain the contribution percentage to employers, noting that it can range from 0% (no employer contribution) to 100% as selected by employers.”


This seems to me to be another administration “Gee I hope I can do this.” entry. And it may not be still included as the regulations seem to change minute by minute.


For all of the forty years I have been involved in employee benefits there has been a provider requirement that the employer pay some portion of the premium cost. Traditionally this has been at least 50% of the employee only cost. This, coupled with a participation requirement, assures the plan is not selected against.


The ACA somehow does not seem to care about, nor recognize, basic insurance and risk principles (or they just choose to ignore it). You might say here that I am being naive because we all know that the plan is to implement single payor systems, use a payroll tax to support it, and eliminate insurance providers from the system. I am not naive but I do hope for sanity to eventually prevail in the implementation process.


For now I recommend employers still plan on making a contribution because insurance companies will not accept your application if you don’t.


For information, contact Bill Weaver, 602-381-9900!

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