Since it became law in 2010, the Affordable Care Act has been the source of much debate. Ironically, due to the name, much of the debate has centered around the cost of coverage not only for businesses but for employees as well. Now, with the 2016 presidential election looming in the distance, premiums are increasing once more, opening the dispute once again.
So, what’s set to come in the fall of 2016 before a new president is selected and healthcare (possibly) changes once again?
Premiums in Some States Will Increase Up to 18 Percent
According to the Kaiser Family Foundation, premiums will increase between 13 and 18 percent in some states in November, including Connecticut, Washington, DC, New York State and Oregon.
While many are pointing the finger at insurance companies for the rise in costs, there is evidence supporting the idea that the Affordable Care Act is to blame. The primary reason for this is because insurance companies continue to lose significant amounts of money in the exchanges, causing them to pull out and forcing premiums up for the remaining participants.
Healthcare providers, depending on the losses suffered, are left with massive rate hikes in remaining state exchanges. And as such, many are calling for a complete overhaul of the Affordable Care Act, which won’t occur (if it occurs at all) until after a new president is elected.
Rising Costs Affect Businesses, Too
As premiums continue to increase, it’s important to note that rising costs will affect businesses like yours as well. After all, employees will be responsible for these increased premiums and you will suffer additional costs, putting additional strain on SMBs who must remain compliant or face costly penalties.
Of course, there are several suggested alternatives to the Affordable Care Act, many of which come from the Republican party. One such suggestion is a comprehensive insurance system in which individuals are given Health Savings Accounts to control their health care needs.
While it is impossible to say what the new law will entail, companies must still contend with what’s to come in the fall and as such, it’s important you be prepared.
Stay Compliant With Flock Before and After Healthcare Law Changes Again
In the past few years, companies have had to deal with the headaches and administrative hassles of the Affordable Care Act. Flock has lessened these hassles with a software designed not only to keep you compliant at both a state and federal level, but to offer benefits visibility, time off tracking, social networking, and other benefits to employees as well.
Join us today for free to begin experiencing the broad range of benefits Flock offers for yourself. Healthcare is challenging enough for SMBs. Simplify it with Flock.
So tell us: Are you finding it difficult to afford healthcare for employees (or that your employees can no longer afford healthcare) due to the premium increases? We want to hear about your personal and/or professional experiences in the comments below!