Exactly two years ago this week, the Obama administration announced it had issued more than 100 waivers en masse to a select group of companies, unions and other health insurance providers seeking relief from the onerous federal health care law. The Obamacare waiver winner’s club now totals 2,000. Where are they now?
Answer: In the same miserable boat as every other unlucky business struggling with the crushing costs and burdens of the mandate.
Among the first and most prominent recipients of the Obamacare waivers for favors were large restaurant chains that provide low-wage, seasonal and part-time workers with low-cost health insurance plans called “mini-med” plans. An estimated 1.7 million workers benefit from such plans. Obamacare forced companies carrying such coverage to raise their minimum limits on coverage to no less than $750,000 annually. Another Obamacare provision forces all employers to spend at least 80 percent to 85 percent of their premium revenue on medical care.
The social justice Democrats’ goal was to dictate insurance provider spending not just on coverage amounts, but also on executive salaries, marketing and other costs. The regulation punished companies with mini-med plans whose high administrative costs were due to frequent worker turnover and relatively low spending on claims — not “greed.” Complying with the provision would have meant tens of thousands of low-income workers would lose their benefits altogether.