Obamacare Glitch May Leave 500,000 Children Without Coverage As Employers Drop Families

September 24, 2013 - 1:42 PM

After several major corporations including IBM, Walmart and Walgreens, announced they will be dropping their employer-sponsored health coverage for tens of thousands of workers, a new error was revealed in ObamaCare that may leave up to 500,000 children without coverage.

In what USA Today labels a "family glitch" if "your employer offers a woman affordable insurance, but doesn't provide it for her family, they cannot get subsidized help through the state health exchanges." ObamaCare defines "affordable" health care as 9.5% of an employee's household income, but this "glitch" in ObamaCare may leave hundreds of thousands of families without healthcare.

One company most noticeable in this glitch is UPS, which in August of this year announced it won't insure spouses of some 15,000 employees, who in turn might not be eligible for ObamaCare subsidies in a state health exchange.  According to Kaiser Health News, a subsidiary of Kaiser Family Health, the plan applies to non-union U.S. workers only and is expected to save UPS an estimated $60 million annually.

While the Kaiser Family Foundation says the average family plan is $15,700, not all employers help out with those costs, and it looks like ObamaCare isn't helping out either. Even though USA Today reports that "new rules state that those families will not be penalized for not purchasing coverage...the point of the law was to make coverage affordable for families." Currently, 4 percent of large employers exclude spouses from employee healthcare, with an additional 8 percent expected to make such a change in 2014.

With the promise of expanding coverage to all Americans under ObamaCare not coming to fruition, one wonders whether or not Congress will take steps to ensure that 500,000 children get the health insurance that ObamaCare promised them. Unfortunately, as more and more companies continue to dump employee health coverage to save costs, that 500,000 children will continue to rise, making ObamaCare even more of a train wreck than it already is.