Next Wave of Cancellations: Small Business
An estimated 18 million to 24 million people in the United States have insurance through employers with fewer than 50 workers, and about 40 million have coverage through firms with fewer than 100 workers. The Department of Health and Human Services estimated in 2010 that up to 80 percent of small-group plans, defined as having fewer than 100 workers, could be discontinued by the end of 2013. But many small employers bought themselves extra time by renewing policies early through the end of 2014. (Washington Post)
“Many small businesses are also discovering that the new plans have more restrictions on access to specific doctors, hospitals and prescription drugs.”
More restrictions and higher premiums are just going to cripple small business in this country.
Most of the small business are just trying to provide coverage for their employees. They are well meaning in their efforts, however, ACA is just making their lives much harder.
It will cripple individuals along with them.
That is the excuse that the government needs to take care of us. Crippled small businesses and crippled individuals means we live on government aid forever.
“The notion that the plans on the exchanges may or may not limit providers scares a mom who has lived through chronic illness with her child.”
One of the biggest issues with the marketplace is the uncertainty of limited providers to find quality health care. There are way to many questions.
At the end of the day, this is supposed to be about helping people. With all of these issues, the middle class is being taken advantage of and shafted when all they want is to pay for health insurance.
Contrary to popular belief, some people do want to be independent and not rely on the government for any form of aid.
And the uncertainty in finding a plan that may replace the one which was just canceled.
As well as the uncertainty to whether it is affordable.
“So I had a blue car, but could not go out and buy another blue car,” she said. “I have to buy a red car, and it’s not as good and way more expensive.”
A very well put analogy.
The difference in this scenario is that everyone is getting a red car. The ones who bear the true cost are unhappy, the ones who don’t are perfectly fine with a free new car.
““So I had a blue car, but could not go out and buy another blue car,” she said. “I have to buy a red car, and it’s not as good and way more expensive.”
At least the red ones go faster.
Well the red ones do tend to have the highest insurance premiums…
In the case of health insurance, faster into the grave.
“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. The timing — right before the midterm elections — could be difficult for Democrats”
Guaranteed, they will try to push that date back so that it takes place post-election.
Indeed, there is no way they will take that kind of heat during elections. They’ll just push it off as per usual.
I do not think that very many carriers will actually exit the small group business in the next year.
They will offer new compliant plans, usually with 30-40% price increases.
For this reason, I am a little annoyed that this post uses terms like “cancelled” or “discontinued”. These have the aura of business being left with no coverage at all in the next 12 months.
The Washington Post article itself was a little more precise.
Now that I have said my piece on language, let me say that the really interesting question is how many businesses will become self funded. This will appeal to businesses with a younger and healthier workforce.
The result is that the only companies left buying commercial insurance will be those with unhealthy employees. If that happens, and it will take a few years, then some insurers really will desert the market.