Health Care Reform
Michigan small businesses have begun to hear from their health insurance carriers that they will need to enroll in a health plan that is “compliant with the Affordable Care Act” as part of their plan renewal in 2014.
Compliance requires significant changes in how health insurance has been traditionally rated – and in the level of benefits provided – and there are impacts on the prices traditionally paid by businesses for coverage. The bulk of small businesses covered by Blue Cross will land in the mid-range of premium increases, meaning that their premium will increase an average of 8 to 10%. But these are averages, after all. About 25% of small businesses will see a flat or premium decrease while on the opposite end others will experience much higher increases.
Why are there so many variances in this new pricing?
A host of factors are impacting premiums, making it difficult to gauge the impact to an individual business unless you know how these factors play into the cost of their new coverage. Each year health care prices increase.
But in 2014 other factors related to new regulation will come into play:
So what should a small business do when assessing its new plan options? Reach out to their insurance agents who have received training on the new requirements to discuss options. Online resources are also available such has healthcarereformbasics.com or www.bcbsm.com.