Obamacare's New Burden for Small Businesses
Amid growing concerns for those losing coverage with new Obamacare regulations, small businesses are now facing another round of private insurance cancellations.
In an article published by the Washington Post:
[A]ccording to industry analysts, insurers and state regulators, the disruption will be far greater, potentially affecting millions of people who receive insurance through small employers by the end of 2014.
While some cancellation notices already have gone out, insurers say the bulk of the letters will be sent in October, shortly before the next open-enrollment period begins.
Some of the small-business cancellations are occurring because the policies don’t meet the law’s basic coverage requirements. But many are related only indirectly to the law; insurers are trying to move customers to new plans designed to offset the financial and administrative risks associated with the health-care overhaul. As part of that, they are consolidating their plan offerings to maximize profits and streamline how they manage them.
“If they do it one way, the word canceled gets attached to it. If they do it another way, they say they are amending the policy. It sounds more gentle but it’s the same thing,” said Gary Claxton, an expert in private insurance at the Kaiser Family Foundation. “The basic point is, for many people in the small-group market at some point soon their coverage is going to change.”
The transformation of the small-group market is just one of the many ripple effects of the Affordable Care Act that will reshape the insurance industry in coming years.
What does this mean for you as a small business owner or employee? Current insurance policies offered to small businesses will often no longer be available for renewal after 2014. Many business owners will find their policy premiums have sky-rocketed. Many employees will also see their premiums increase as the heavy burden on their employers gets passed along. Read More Here.
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