Small businesses delaying ACA compliance decisions
Many small businesses in Maine are renewing small group health care plans for employees before Jan. 1 to delay buying coverage in compliance with the Affordable Care Act, which are likely to carry higher premiums.
The Portland Press Herald reported sources including insurance brokers and small companies said some companies are also rushing to renew their small group plans to buy more time to consider their options.
Eric Jermyn, Anthem Blue Cross Blue Shield’s small-group sales director, told the paper that the rate of early renewals for small group plans has surged in recent months, especially for plans set to expire in the first quarter of 2014. The company has offered early renewals of plans since the spring.
Around 90,000 Maine residents are covered through the small group market, which is typically used by companies with fewer than 50 employees. Small-group policyholders with plans out of compliance with the ACA coverage standards received notices earlier this year that they would have to buyplans that meet the new standards starting Jan. 1. Then, last week, President Obama announced the federal government will allow insurers to continue selling non-compliant individual and small-group policies through 2014.
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