Outcome of employment lawsuit could promote use of skimpy health plans
Summary
A lawsuit challenges the definition of who counts as an employee eligible for work-based health insurance plans. Its result could allow cheaper health plans that offer less coverage and avoid some consumer protections, raising concerns about the spread of low-quality insurance.Key Facts
- The case was filed in 2019 against the Department of Labor by Data Marketing Partnership.
- Data Marketing Partnership wants its limited partners to buy work-based insurance that skips some state and federal rules.
- Consumers must download an app to track their internet searches to qualify as limited partners.
- Courts are deciding if these limited partners can be legally seen as employees.
- A judge in Texas ruled in favor of Data Marketing Partnership, calling the Labor Department’s advice against this "arbitrary and capricious."
- The Department of Labor has defended the traditional employee definition under both Trump and Biden administrations.
- The case could lead to more low-cost but less protective insurance plans entering the market.
- Rising premiums on Affordable Care Act plans are causing more people to drop coverage, increasing interest in alternative plans.
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