Daily Archives: April 3, 2013

Small business Obamacare implementation delayed for one year

NYT: Small Firms’ Offer of Plan Choices Under Health Law Delayed

The law calls for a new insurance marketplace specifically for small businesses, starting next year. But in most states, employers will not be able to get what Congress intended: the option to provide workers with a choice of health plans. They will instead be limited to a single plan.

In the past small businesses have offered plans from a single carrier and typically only one plan. The goal was for the exchange to provide access to different plans from multiple carriers without the complications of a small business trying to deal with mulitple carriers (assuming that was an option). It appears states implementing their own exchanges could still offer multiple plans to small businesses this year but Federal exchanges will not and states developing their own exchanges are being give leeway…

The administration cited “operational challenges” as a reason for the delay. As a result, it said, most small employers buying insurance through an exchange will offer a single health plan to their workers next year.

and regarding the logistics of working with multiple carriers…

One of the most important tasks of the exchange is to simplify the collection and payment of monthly premiums. An employer can pay a lump sum to the exchange, which will then distribute the money to each insurance company covering its employees.

Understandably, small business who supported Obamacare are disappointed.