Under the Affordable Care Act, currently “small” employers who are required under HCRA to provide health insurance are grouped in with larger employers for the amount of premiums they are charged. However, starting in 2016, employers with 100 or less employees will be grouped into the Small Group Market where premiums are higher. Even worse, states may combine the Small Group market with the Individuals Market, in which case the premiums would most likely be even higher. Therefore, unless something changes between now and then, small employers should prepare themselves for a very large rate increase.
These rules will not apply to employers in the Large Group Market or to businesses that are self-insured. Thus, companies that were previously too small to consider being self-insured may want to re-evaluate that option. Contact your ShindelRock Professional to get ready for the coming changes in the health insurance market.