Health Care Exchanges for Small Business Employers
Among employers with fewer than 50 workers, 52 percent offer health benefits. Since most employers nationally are small, this group drives the overall offer rate for employers, which stands at 55 percent in 2014. Firms that do not offer health benefits to their workers most often cite cost-related reasons, though one in 10 cite the coverage available to workers through the ACA insurance exchanges as a factor.1
2014 also marked the establishment of state-based Small Business Health Options Programs, or SHOP Health Insurance Marketplaces. These Marketplaces, established under the Affordable Care Act, allow small businesses to join together in a large pool of firms, where they have the purchasing power of large companies to get lower prices and better coverage for themselves, their employees and their families.2
In Connecticut and throughout the U.S., this means more stable, affordable pricing from year to year, lower administration costs, and a broader choice of available plans.
From 2014 to 2016, this means small businesses with up to 50 employees will be allowed access to the Marketplace, with the discretion to allow businesses of up to 100 employees. Beginning in 2017, many states will have the discretion to allow businesses with more than 100 employees access to the Marketplace.3
With the formation of the Marketplace, it also means that insurance companies can no longer deny coverage based on pre-existing conditions, selectively refuse to renew coverage, charge different premiums based occupation, gender or pre-existing conditions, or set unreasonable out-of-pocket spending limits that can drive employees and their families deep in debt.