Industry Lauds Repeal of PPACA Provision for "Free-Choice" Vouchers

The American Benefits Council was a strong supporter of repeal, as was the ERISA Industry Committee.

In a recent letter to members of the Senate, ABC officials said a “much more appropriate way to address this situation, in addition to any possible modifications to eligibility for subsidies in the exchanges, would be to allow those individuals who are not able to afford coverage offered under an employer plan to purchase low-cost catastrophic coverage (which includes comprehensive coverage for preventive care and access to primary care services).

The ABC said Sen. Susan Collins, R-Maine, has proposed an amendment during the markup process for PPACA that would accomplish that.

ABC said in its letter that any other possible proposals to require employers to provide vouchers even more expansively to employees who decline coverage under their employer plan “should be summarily rejected.”

That’s because, the ABC letter said, under such approaches, “employees who remain in the employer’s plan would lose the value of the premium contributions from their co-workers who opt out and obtain coverage in the insurance exchanges.”