This Article Focuses On The Pro’s and Con’s Of Early Renewal Health Insurance Options Under ACA:
- October 4, 2013: Kaiser Permanente California Small Business Plans
- October 14, 2013: Blue Shield of California Small Group Plans
- November 15, 2013: Anthem Blue Cross California Small Group Plans
- December 31, 2013: HealthNet Small Group Plans
Pro’s and Con’s of advancing your group health plan’s renewal date
Why do it in the first place? (Reasons why a small business employer should consider an Early Advance Renewal Health Insurance amendment)?
- Your insurance company is offering to extend the rate guarantee period to 12/1/2014, with a nominal rate increase
- You want to buy more time to let the health insurance market settle down
- You want to keep your current plan as long as possible and since it is not grandfathered, you have been informed it will be retired from the market in 2014
Why your small business should not do an Early Renewal Health Insurance change?
- You have a grandfathered health plan
- Your renewal date is already October, November or December
- ERISA compliance concerns
- Loss of IRS Small Business Healthcare tax credit
- You have two insurance carriers and one of them offers grandfathered plans, which would result in two different open enrollment periods
Other Upcoming Changes Affecting Family Business Health Plans
- If you do nothing, you will lose the IRS Small Business Healthcare Tax Credit in 2014
- 2-Person Husband & Wife Groups to Lose Eligibility Thanks To Obamacare
For additional employer requirements under the Affordable Care Act legislation click here. For rate comparisons of new group health plans, click here. For non-group e.g. individual family plans click this link.
Got questions? Beat the October rush and reserve your free 30-minute Q&A session (via Eventbrite invitation below):
- Blue Shield Early Renewal Form
- KAISER-Early Renewal Confirmation Form
- Anthem Early Advance Renewal Option Form