Smart Benefits: Obamacare Brings Big Changes to Small Employers
Monday, January 27, 2014
By 2016, employers with 51-100 employees will need to adhere to small group laws under healthcare reform. And that means they should expect to give up the ability to negotiate with insurance carriers, lose plan designs, and face higher premiums.
Age-Rating Will Drive Up Premiums
Currently, these employers can negotiate rates with insurance carriers just like larger employers. But after 2016, they will have to accept the rates given to them. And, since small group is now age-rated, that will mean higher premiums for many employees.
Small Groups Will Pay for Low Exchange Enrollment
The first open enrollment since small group reform revealed that the number of young adults enrolling in health exchanges is well below what was projected (10% versus 40%). And that means groups with 51-100 employees will be used to expand the actuarial base and absorb the losses.
And there's talk of merging small group with the individual market, another indicator of higher rates to come.
Fewer Plan Designs on the Horizon
Being switched into small group status means employers with 51-100 employees will be forced into plan designs that limit deductibles to $2,000 for individual plans and $4,000 family ones. Employers offering higher deductibles should plan for higher premiums as a result of moving to richer plan designs.
Self-Funding Could be the Answer
Employers concerned about these changes should consider the new self-funded products available to them. Insurers are quickly rolling out self-funded products that include various stop-loss options designed specifically for smaller businesses.
And, by opting for self-insurance, employers may also be able to save on administrative costs and eliminate premium taxes, as well as some of the taxes stemming from the Affordable Care Act.
Related Slideshow: 13 Biggest Healthcare Stories in RI in 2013
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13 Doctors Behaving Badly
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With charges ranging from unprofessional behavior in the office to giving morphine to babies to breaking into a residence without permission at 3 in the morning and being in possession of marijuana, this breakdown of reprimanded doctors in 2013 is simply a must see.
12 Staying Healthy + Fit
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Summer brings soaring temperatures, family cookouts and tempting warm-weather treats like ice cream and margaritas, and can easily sabotage your fitness and diet plans. That’s why leading nutrition and exercise experts at The Miriam Hospital shared their timeless top tips for staying fit and eating healthy while still having fun in the sun.
Summer fitness never goes out of style. Click here for tips you can use every year to maintain that beach body!
11 Well-Being Index
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Rhode Island may need an attitude adjustment, according to the latest Well-Being Index numbers from Gallup-Healthways. The state's latest ranking for happiness is #37 in the nation, a drop of 2 spots from last year. And that ranking was a drop from the year before.
10 Retail Insurance
Smart Benefits: Health Insurers Go Retail
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9 A Healthier You in 2013
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8 RI’s Sexual Health
Rhode Island’s Sexual Health Worst In New England—New Ranking
Rhode Island's abysmal showing in the 2013 Sexual Health Rankings landed them at last place in New England.
The first-ever assessment of state-by-state data on 26 comprehensive health and services measures that speak to sexual health put the Ocean State at #19 overall in the US, and #6 among New England states.
7 Deloitte's Big Contract
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Last January, Governor Lincoln Chafee announced that the State had awarded a $105 million contract to Deloitte Consulting to create the technology infrastructure to modernize the way the state administers Medicaid and other human service programs, and, most importantly, to create Rhode Island’s Health Benefits Exchange in compliance with the Affordable Care Act. Do you think Deloitte was the right choice? Read on for a breakdown of why Deloitte was chosen and the outlook on the exchange - who's rollout was not without its hiccups - while it was in just the conception phase.
6 Non-Profit Hospital CEO
Rhode Island Non-Profit Hospital CEOs Criticized For Big Paychecks
The American healthcare system may be quite deathly ill. But the paychecks CEOs of Rhode Island non-profit hospitals are quite healthy.
Because of the trend of for-profit chains buying non-profit hospitals, which has swept the nation over the last decade or so, only eight non-profit hospital groups remain in the Ocean State. Together, they control a total of 11 hospitals.
And you won't believe how handsomely the CEOs of these hospitals are paid.
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4 Health Exchange Rebrand
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Dubbing the Health Exchange HealthSource RI and announcing the state's new contact center in Providence, the exchange announced it would employ 70-100 Rhode Islanders when fully operational who would be accessible to individuals and small employers to talk in-person or over the phone with engagement specialists who would provide personalized assistance in finding, comparing, and purchasing health insurance options available through HealthSource RI.
3 Heart Health
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2 Health Exchange Launch
Healthsource RI Announces Health Benefits Exchange Rates
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The exchange launched on October 1st with no shortage of hiccups, but the launch was relatively smooth by comparison to those in states whose exchanges were facilitated federally. By November, the exchange had processed over 4500 applicants. And by December the New York Times noted that the RI exchange was the second-best performing in the country with enrollment exceeding target rates by a sizeable margin.
1 Patients Rank Hospitals
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