It is no secret that small businesses health insurance costs are on the rise, and so is the trend of small businesses that their small business group health insurance plans fall. As these employers (with fewer than 50 employees) to the Affordable Care Act are (ACA) employer shared responsibility provision (employer mandate), many of them employees are to obtain market director coverage for health insurance.
in the past month, the Associated publications Press an article about the trend of small employers who throw their group health insurance their employees pay to help individual health insurance. Yesterday, the Wall Street Journal reported on this growing trend. Here are the highlights from the article.
insurers a decline in small groups Coverage Seeing
According to the Wall Street Journal (WSJ), WellPoint Inc., said that his small group of companies health Membership "shrinking faster than expected and it has about 300,000 people lost since the beginning of the year."
While WellPoint plans were clearly smaller companies to reduce membership in the next five years, the reduction can happen in the next two years. According to Wayne DeVeydt, WellPoint CFO with the marketplaces of the ACA is running smoothly, small employers are more likely to consider the market as an option for their employees.
Aetna CFO Shawn M and a similar trend among small employers perceived. Guertin has. Guertin said the company had "some erosion at the bottom of the market", noted especially for employers with two to 10 employees.
Kaiser Permanente has also experienced shrinkage small business group market. Joe Smith, Kaiser vice president for small businesses, found that the market was in decline. "Particularly in places where the insurers with favorable individual plans "
small employers the perks of individual health insurance remarked
The WSJ also interviewed small business, the result of skyrocketing premiums and overwhelming administrative their group health insurance fall problems.
owner of the Empire cell phone accessories, Laura Land, one of the small business owners is that their group health plan next year is lowered to its employees to the state marketplace steer.
country that found itself for a cheaper replacement options their company reject group plan had several new employees that "It's to be too much paperwork that we manage the plan before especially if the workers want to reject anyway and go to the exchange. "
King par LLC is another small company, ending their health plan in February to decide, as the company was a rate increase opposite. The CFO of the company explained that low-wage employees pay a similar amount in the direction of their premiums as previously because of premium tax credits .
King Par a salary bump offered to employees , which made for premium tax credits to qualify for a lot of money for the lost health services to form. While this may seem like an advantageous arrangement for both sides, there are several issues with this solution .
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There is no guarantee that employees actually spend the money on health insurance with a scholarship.
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The employer can lose with formal health benefits rather than top-tier candidates for employers. During a scholarship for candidates may be slightly in response, would prefer the most formal, tax-deferred program health benefits
The insurers try for Lost Business to make up
According to the WSJ article, the insurers try for the company to make, by employees who lost their individual plans. Medical Mutual reported the strongest shift away from group health insurance in employer with only two to four employees.
Medical Mutual is supposedly "work facilitate the transfer of undertakings who want to move from a group plan individual coverage", the WSJ after. According to Dan Polk, vice president who cared for in small groups business: "This is the best way to get the membership." Polk also noted that the company has a "very high percentage" is retained employees whose employers drop group plans.
Read the full article from the Wall Street Journal here .
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