Washington State Floats Plan to Drop Health Plans, Push to Exchanges

Hoping to limit health insurance-related expenses for part-time workers, Washington state has proposed dropping health plans for part-time government workers who would qualify for federally subsidized coverage on the online exchanges that launch next year, according to a report by the Associated Press.

Washington, which offers coverage to state employees who work 20 hours a week or more, is the first state to propose dropping health coverage for certain employees, but many believe it will not be the last, according to the report.

Under the Patient Protection and Affordable Care Act, individuals and families who earn less than 400 percent of the federal poverty line — roughly $46,000 for an individual and $94,000 for a family of four — would qualify for some amount of financial subsidy in order to purchase health insurance on the exchange if their employer does not offer them an affordable plan. By dropping coverage, Washington state would shift the cost to insure its part-timers onto the employees and the federal government.

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