Part-time workers at Universal Orlando have ObamaCare to thank for the impending loss of their low-cost health insurance at the end of this year. Why? Because ObamaCare prohibits employers from offering a viable option to workers that includes a capped coverage in exchange for a low premium. That’s right — these plans are against the law under ObamaCare.
The reason: Universal currently offers part-time workers a limited insurance plan that has low premiums but also caps the payout of benefits. For instance, Universal’s plan costs about $18 a week for employee-only coverage but covers only a maximum of $5,000 a year toward hospital stays. There are similar caps for other services.
Those types of insurance plans — sometimes referred to as “mini-med” plans — will no longer be permitted under the federal Affordable Care Act. Beginning in 2014, the law will prohibit insurance plans that impose annual monetary limits on essential medical care such, as hospitalization, or on overall spending.
What a travesty. To learn more about the “crowding out” that occurs under ObamaCare, read JLF’s John Hood in this piece.
Bonus Observation: I just asked a 20-something progressive who is just starting his career if he would buy an $18/week insurance plan with caps, as Universal Orlando offers. He said yes, that it sounded like a good deal. Then I told him these plans are illegal under ObamaCare. He was shocked. Safe to say there are many more ObamaCare shocks to come.
