February 16, 2012


Our guest asks:

Do you currently have small group plans available on the exchange?  Will you have access to the PPACA subsidies by 10/13?

OnlineAdviser responds:

We will support enrollment in these plans when they are offered but the details are not known at this time. Right now only a few areas of the country have small group insurance plans that are subsidized basis and these have not been popular with a majority of small companies that buy group insurance. Use of the insurance exchanges for unsubsidized group insurance is practically nil at this time because better options are available in the commercial market.

There is no indication that the best coverage options for small businesses in 2014 will be through a cost-subsidized group insurance plan obtained through an insurance exchange. Market evidence indicates that other coverage options will be preferred. It is still possible that the small group insurance market will largely disappear within a few years as small business employers opt to reimburse employees for the cost of less expensive individual insurance policies that are becoming increasingly popularity. Subsidies for individuals may ultimately prove to be more manageable for governments than small business subsidies.

We have no specific information on the future of these issues other than what is publicly available at this time. However, we expect that between now and 2014 there will be substantial modification of the exchange development plans, the availability of subsidies and the timing of the services prior to the previously announced roll-out date. Subsidies may be changed, delayed or scaled-back from the initial targets and additional burdens may be imposed on employers who claim subsidies.

Our focus is on providing small business adviser or navigator services on a case-by-case basis that will offer the best available public and commercial options to businesses independent of progress of the insurance exchange program.

 

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