The Changing Health Insurance Landscape

How has the health insurance landscape changed for you, your business, and your family? Probably pretty drastically in the last 12 months! We now no longer have health policies that require underwriting approval, nor do we have the ability to buy health insurance year round. The rules of the game have changed, and what continues to amaze us is the amount of strategy that goes into each client’s health insurance decision process making these days.

For example, a family with a spouse that is offered affordable health coverage through their employer eliminates the eligibility of the whole family for tax credits (in most cases). The ACA law is written with the presumption that if it’s affordable for the employee, than it will also be affordable when adding a spouse and/or dependents. We all know this simply isn’t true! When adding a spouse and/or dependents to a group health plan, the premiums typically shoot through the roof. We hope to see a revision made to this part of the law to open the door for more consumers to be able to participate.

We are also seeing more and more small businesses, especially the ones with less than 10 employees, moving away from their group health insurance, and opening the door for their employees to see individual health plan options. For much of the under 45 age group, the rates on the individual side tend to be lower than a group plan, plus the employee has the flexibility to choose from many different plan options and the possibility to receive tax credits to help pay for it.

Many industry experts have said they believe the ACA could eliminate the majority of group health insurance plans throughout the country within the next 10 years, and we couldn’t agree more. Maybe not for the Fortune 500 companies, but for the majority of small businesses around the country, moving to individual coverage is a blossoming trend.