Some Employers Seek Relief From High Insurance Costs Outside the Law

The Denver Business Journal reports that some employers are finding unusual - and sometimes illegal - solutions to rising health care costs. One Denver small business owner no longer purchases health coverage for his employees, but instead reimburses them for individual health insurance policies they purchase on their own. He finds it costs less to reimburse his workers' premium costs directly - but Colorado law forbids this practice, because it takes business away from insurers who write small business insurance policies and drives up costs for those who remain in the small business market.

Also, while some may be able to find cheaper individual insurance policies, the coverage is likely to be less comprehensive than the coverage provided under small group plans. Individual policies may skimp on prescription drug coverage or have higher copays and deductibles. Still, they are better than having no coverage at all - all it takes is one unexpected hospitalization to wipe you and your family out financially.