30 Second Insurance Tips©

Tip 183- The Renewals Are Coming! The Renewals Are Coming!

The Affordable Care Act requires changes in the way small group health plans (2-50 ATNE) are priced, most notably moving toward community rating (young and old pay the same) and gender neutral premiums. Long story short, depending on the demographics of the group, ACA compliant premiums can be much higher.

Last fall, Washington provided something called “transitional relief;” i.e., groups that renewed their old coverage before the end of 2013 could continue using the pre-ACA rating structure. That’s why so many health plans have a December 1 renewal date, in case you’d forgotten.

Here’s some good news. “Transitional relief” is being extended another year.

Employers with small group health plans will be able to pick the best of both worlds. Renew your old plan without change and keep the old rating structure. Or, move to an ACA compliant plan, without the hassle of medical questions.

We’ve just previewed a batch of December renewals. With “transitional relief,” many are lower than in past years. A few are higher.

Expect a visit from your broker any day now… and not in a Red Coat!