Home Page Blog Home & Auto Insurance Business Insurance Health Insurance Why Us?



We've been so busy working with our customers that we haven't had time to post anything for awhile. So much has happened and changed, from the way the law was written and meant to roll out. In the next few posts, we'll give you our take on some recent health insurance news.

This entry is about the announcement that the online SHOP health insurance plans have been delayed - not just for another month, but all the way until November 2014!! Refer to this USAToday article for the details.

Our take:
We have two main thoughts about this.

First, we're disappointed that this option has been taken away from our customers. We're sure that some of you would benefit from being able to cancel your traditional group coverage and instead put your contributions into a cafeteria-style arrangement in which your employees could choose the insurance carrier and coverage that's best for them. Yes, you can still do it using paper forms, but that makes it much more difficult to implement in most small businesses.

Second, this is another blow to the pricing stability of the entire individual market. Why?

Simply because the biggest threat to the individual market is that older and sicker people will be the only ones motivated to buy coverage. Without enough younger and healthier participants, rates will have to increase significantly at renewal.

Online SHOP plans would have brought another group of people into this individual market. With contributions from their employers, more of these younger and healthier people would have enrolled.

But now they won't.

Ironically, if you wanted to destroy the individual health insurance market, delaying SHOP plans would be part of your strategy.
Share |


No Comments


Post a Comment
Name
Required
E-Mail
Required (Not Displayed)
Comment
Required


All comments are moderated and stripped of HTML.
Submission Validation
Required
CAPTCHA
Change the CAPTCHA codeSpeak the CAPTCHA code
 
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive


View Mobile Version
Home Page About Us Contact Us