Obamacare Fiasco: Many Small Businesses are renewing Health Plans Early to avoid Higher Premiums

Thousands of small businesses around the U.S. are racing to renew their health insurance policies Dec. 1 to beat large premium increases their brokers say will hit them Jan. 1 when the Affordable Care Act takes full effect. 

Some health insurance brokers also say 2014 may be the last year many of the companies even offer health insurance.

Insurance brokers from several states told USA TODAY that 60% to 80% of their small-business clients — those with 50 employees or fewer — are renewing their policies early to skirt the law. Companies with more than 50 employees aren't allowed to adjust their renewal dates. 

Many companies are still waiting to hear what rates they'll be facing in 2014, as state insurance commissioners are backlogged with tasks related to ACA compliance.

[...] 

Beginning this summer, insurance companies warned brokers and businesses that rates could rise dramatically because of the ACA, and some of these agents say they are seeing increases of 30% to even 100% in premiums, especially for businesses that have young workforces. That's because companies will no longer be able to charge older people more than three times they do younger ones. 

Moving up renewal dates, which could affect millions of workers, will save these employees money on their premiums, but critics warn it also means they won't benefit from some of the ACA's provisions. Among the changes that take effect Jan.1: fully paid preventive care doctor visits, limits on out-of-pocket expenses and mandatory dental coverage for children.

Read the full story HERE.

If you like what you see, please "Like" us on Facebook either here or here.
Please follow us on Twitter here.