ObamaCrapCare Causes Loss Of Insurance For Another Group Of Employees

Another University Scales Back Insurance Because Of Obamacare

By Robert Gehl on December 11, 2013 Subscribe to Robert Gehl's Feed

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In a direct response to Obamacare, another university has slashed its health care offerings.

The University of Minnesota offers what the Affordable Care Act calls a “high value” plan – one that is subject to a hefty excise tax.

So to avoid paying the tax, the university is raising copays, premiums and deductibles – and will then not be considered a “high value plan”

The tactic might save the University $48 million in 2018 on “high-value” insurance plan like the one the university offers – or offered.

To compensate, the union that covers the school’s employees have negotiated a 3 percent pay increase that has yet to be approved by the state board of regents.

A “university email said the [employee] cost increases were necessary to help the University avoid a $48 million excise tax in 2018,” it reported. “[B]eginning that year [2018], the Affordable Care Act will put an excise tax on ‘high-value’ insurance plans to discourage consumers from overusing the benefits on these plans.

This is just one of a number of schools that have reduced or eliminated health insurance for employees and students.

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According toMinnesota Daily:

Although cost increases aren’t ideal, faculty members generally accept the UPlan changes, said law professor Fred Morrison.

“I think there is an understanding among many faculty that they will be necessary,” he said. “But they are unfortunate.”

The annual open enrollment period, when UPlan members can adjust their health insurance plans, ended Monday, according to OHR.

Some union members likely took advantage of that time to find the most inexpensive insurance plan possible, said Cherrene Horazuk, president of the American Federation of State, County and Municipal Employees chapter of University clerical workers.

She said people have told her they were looking at the lower-cost, smaller-network Accountable Care Organization plan, commonly known as an ACO, which the University is offering for the first time in 2014.

“I know that people were very concerned about the costs overall,” Horazuk said.