Many business owners would be in shock when they see their group health insurance renewals these coming months. Effective from 12/1/2015, all grandfathered and grand mothered groups (those group plans that enjoyed low premiums because they stayed with the original benefits before the introduction of ACA) are to be renewed with plans in compliance with ACA minimum benefits. The new benefits would include pregnancy and pediatric dental coverage even the members are neither female nor minors. What can they do to counter the sharp increase? Not much as all health insurance carriers are required to offer the ACA plans after 12/1/2015 and there are no other alternatives unless they cancel their plans. But if they have 100+ employees (two part time employees counted as one full time), then they are required by law to provide the health insurance to their employees.
Brokers are cancelling their vacations and getting ready for exhaustive long hours to work with their clients trying to smooth the wrinkles of the “premium shock”. Carriers are sharpening their quoting tools and sales effort working to entice their competitors business transferring to their books of business. September and October would be the frantic months as few business owners would like to wait till the last minutes to make the changes.
To quote you a real life example – one of our clients with less than 30 employees are experiencing an unforeseen 45% increase in premium for their Grandfathered Health Plan. We checked with other carriers, similar plans are even offered at more than 10% higher rates.
Golden Gate Bridge by N. Yuen taken on Aug 30 2015
We would also like to share beautiful vista with you besides the awful news of premium increase.