Back in August 2011 I highlighted one of the biggest issues in health care reform that is getting little to no attention. The issue is regarding the 9.5% premium cost rule that is the qualifier for an employee to receive a federal subsidy for their portion of health insurance premium. The issue is if the 9.5% includes only the single employee’s premium or if it includes the family premium. This matters greatly since more employees would qualify to receive the federal subsidy if the regulations included the family premium since it would represent a larger percentage of the employee’s income, likely exceeding the 9.5%.
Sarah Kliff of the Washington Post expressed it as a $50 billion cost issue to HCR. More recently, a staff writer to Kaiser Health News attempts to bring light to this same issue.
It’s worth pointing out that if more employees qualify for the subsidies more employers will pay penalties. My guess is if the health care law survives the Supreme Court, other legislative challenges, and the Obama administration wins this coming election you will see regulation supporting the inclusion of family premiums in the 9.5% rule. But it’s only a guess.
