By Employee Benefit Research Group
More healthcare-related regulatory news for plan sponsors, including links to detailed information.
CMS issues report to Congress on the impact on premiums for individuals and families with employer-sponsored health insurance
The Patient Protection and Affordable Care Act (ACA) requires all non-grandfathered health insurance coverage in the individual and group markets to be guaranteed issue and guaranteed renewable. In addition, all non-grandfathered insurance plans and policies in the individual and group markets can vary premium rates based only on age, family status, geography, and tobacco use—the variation in the age and tobacco use factors is limited.
This new premium rating requirement will impact the premiums paid by individuals and families working for small employers who offer health insurance. Specifically, the Centers for Medicare and Medicaid Services (CMS) has estimated that the premium rates for roughly 11 million people will increase and that about 6 million people are expected to experience a premium rate reduction that will be due to sections 2701 through 2703 of the Public Health Service (PHS) Act.
To read the entire report, click here.
CMS issues notice to employers about 2014 SHOP marketplace enrollment
Starting in fall 2014, you and your employees may be able to apply for and enroll in the Small Business Health Options Program (SHOP) online for coverage that starts January 2015. That’s also when you’ll have the option to offer your employees a choice of qualified health plans and be able to make a single monthly payment to insurance companies, no matter how many plans your employees have selected.
Since you can’t apply for SHOP coverage on HealthCare.gov at this time, you don’t have to create an online account. But if you’ve already created an online account, you can use it as soon as SHOP online enrollment is available for coverage starting in 2015. Until then, you should enroll directly with an agent, broker, or insurance company that offers a SHOP-qualified health plan.
For more information on 2014 SHOP marketplace enrollment, click here.