No matter how you feel about the Affordable Care Act, you would admit that it has played a major role in the transformation of the health insurance industry.
But are you keeping up with this transformation? Here are a few ways how small to medium enterprises are positioning themselves to adapt to the changes:
Small Businesses Will Transition To Well Defined Contribution Health Plans
Previously, small business owners turned to small group health plans to provide insurance to their employees. But the rapid growth in premium rates has made it somewhat unaffordable to business owners. Moreover, companies with less than 20 employees are less likely to secure health insurance plans that enable employees to choose between coverage options.
One thing companies are doing is they are connecting employees with individual health exchanges and offering healthcare allowances so that they can find something that satisfies their needs within the allowance budget.
Individual Health Insurance Is Becoming More Transparent
Today, shopping for an individual healthcare insurance plan can be a challenge. The lingo, variety in prices, plans and details can be overwhelming. There are so many forms to be filled out and countless past records needed.
This has changed as of 2013, as consumers can now create accounts on their state’s online health insurance exchange and compare qualifying plans. Since all the plans covers standard set of basics, the pricing is highly transparent. Under ACA, insurance companies can no longer change their prices or deny coverage based on medical history.
Therefore, today it takes much lesser time to evaluate and enroll in a health insurance plan. Moreover, the regulations translate into better premium rates.
Better Quality Of Healthcare
Most importantly, healthcare quality is expected to improve. Since insurance carriers can no longer use risk avoidance as a tactic to increase their profits, they now have to offer incentives for customers to choose their plans over others. Combine that with the latest transparency initiatives and consumers will now see which plans provide access to the best healthcare providers at competitive prices.
Do all these changes seem confusing?
At JS Benefits Group, we are here to help. From understanding how things have changed since the ACA healthcare reform in New Jersey, to creating individual benefits packages for each of your employees, we offer it all. Get in touch with us to learn more about our services.
