MORE CHANGES COMING FOR SMALL GROUP HEALTH INSURANCE IN 2016
regulatory and market challenges for the business owner … and, 2016 will be no different.The definition of “small group” in regard to business health insurance is changing next year, affecting many employers and employees. Prior to 2016, groups with up to 50 employees were considered small, requiring them to follow a certain set of rules and regulations, including those related to essential health benefits, actuarial value and premium rating restrictions.For 2016, the maximum number of employees for a small group will increase to 100. As businesses with 51-100 employees renew or purchase new coverage, they will face more restrictive rating rules than before. This will have an effect on relative premiums for groups, increasing for those that are younger/healthier and reducing for older/sicker workers.Companies with 51-100 employees will also be subject to the shared responsibility provisions in 2016 that already apply to large groups with over 100 employees. Under these rules, employers will face penalties if they have employees who obtain subsidized coverage in an exchange or don’t offer coverage that meets certain value and affordability requirements.Insurance providers are preparing for the next renewal cycle with products that are designed to help keep costs down with networks that are tiered or narrower, private exchange options, defined contribution models, health savings options, and more.
Many employers are also considering new plans that will be coming on the market in 2016 to self-insure. Since self-insured health plans are not subject to ACA health insurance fees or state premium taxes and are exempt from rating rules and benefit requirements, they can be more flexible regarding coverage and design, and their costs can more directly reflect their actual claims.
Now that larger employers are being reclassified as small groups, PEO’s can help level the playing field for any size business. A PEO can help get the lowest rates and best healthcare plans for any size group.
Why PEO Brokers of America?
We help place our clients with the right PEO for their business needs. We take the hassle out of finding the right PEO for your business. Contact us today for more information!
888.370.5406
info@peoboa.com