As the implementation of the Affordable Care Act (aka Obamacare) nears, some employers are considering dropping out of the traditonal health insurance market. While not offering coverage at all come 2014 would mean paying a hefty per employee penalty to the government, that's not true if employers self-insure their health care needs. Companies with a relatively young and healthy employee pool may save money by self-insuring routine medical care and purchasing a catastrophic insurance policy (that isn't a health insurance policy) that kicks in only after an employee's medical costs hit a certain level such as $50,000 or $100,000. Because this policy is not health insurance, it isn't regulated as strictly.
The lesson: There may be alternatives to providing traditional health insurance coverage that don't mean paying a hefty penalty.
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