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Angie Drobnic Holan
By Angie Drobnic Holan November 12, 2009
Back to Reimburse employer health plans for a portion of catastrophic costs

Health bills include reimbursement plan, but it's limited

During the campaign, Barack Obama suggested reimbursing employer health plans for a portion of catastrophic costs as an element of his health reform plan.

Bills in the House and Senate include such reimbursements, but they include more specifics than Obama mentioned.

For one thing, the reimbursements apply only to retirees aged 55 to 64, an age range that is not eligible for Medicare. They also apply only to 80 percent of health costs between $15,000 and $90,000. Those numbers are important: In effect, employers will receive reimbursements only for retirees who have significant health issues. Some catastrophic illnesses, however, cost more than $90,000, and employers wouldn't see reimbursements for that.

The proposals do require that plans prove they are lowering costs for their other members, not just pocketing the reimbursement.

The health care proposals still need to be finalized and made into law, so we rate this promise In the Works.

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