The White House announcement yesterday delaying certain provisions required of insurance companies by the Affordable Care Act has been greeted warmly by small businesses struggling with how the new law will affect their health insurance, reports the NYTimes.com’s You’re the Boss blog.
Despite some predictions of a similar, imminent wave of mass cancellations, many small-business owners — perhaps most in some places — were making plans to renew their current policies early, allowing them to defer hard decisions on new plans until late next year. The main incentive for renewing early, according to agents, is simply to avoid rate increases. The Affordable Care Act’s provisions limiting how much insurers can charge different plan participants benefit some groups but punish others. In theory, the changes should help groups with older, sicker employees and hurt groups of younger, healthier employees. And just because the administration is permitting insurers to renew existing policies does not mean carriers will do so. Insurers “have invested time and money to revamp a portfolio of products in an effort to comply with the law,” said David Mordo, vice president of Walsh Benefits, a general agency based in New Jersey. “They created new infrastructure, they created new technology.
See Full Story: Obama Health Care Fixes Give Time For Small Businesses To Assess (NYTimes.com’s You’re the Boss blog)
On the SmallBusiness.com WIKI: Affordable Care Act
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