In my last blog post, we talked about preparing for the tsunami known as the Affordable Care Act, also known as ‘Obamacare.’ It will fundamentally change the way health insurance works across the country and in most cases, it will increase cost. What can be done to mitigate the impact?
Micro-employers, those with less than 10 employees may benefit from the rating rule changes. But larger small groups with more than 10 but less than 50 employees will most likely subsidize these changes by redistributing the premium paid. Employers that were previously in a preferred risk industry, e.g., engineering companies or accounting firms, will pay more. Employers in more risky industries, e.g., dynamite makers, will pay less due to the elimination of industry rating.
