Did the ACA Effect Group Health Insurance?
Group Health Insurance Indiana
When the Affordable Care Act (ACA) went active, a large a majority of Indiana small business dropped their group health plans and moved to the individual market. At first, this was an excellent option for reducing costs for both the company and the employee.
Businesses that had little employee turnover, no growth strategy, and lower compensation, have benefitted from dropping the group health plan. The main advantage came from tax credits from the marketplace.
Group Health Insurance Indiana 2018
We fast forward to 2018, tax credits are available, but the individual carriers left in Indiana have limited network access. These medical providers are built from the Medicaid system, and there have a been an exodus of providers that will no longer accept any marketplace plan.
Small group owners now realize that the individual options are no longer the best solution for their personal and business needs.
Small employers are now looking to set up new group health plans. Group Health insurance, allows the company to retain what key employees they have and allows the business owner to have access to all of the medical providers.
Attracting Employees with Group Health Insurance Indiana
A company that is not willing to offer group health insurance may not be able to attract employees, and a company is only as good as their employees.
For 2017 in Indiana, we have seen a lot of companies putting in 1st-year benefits or returning to offer a group health plan.
Some companies have tried to turn to the group health plan, but have problems with meeting participation. Most health insurance companies require 50% of the full-time employees to take the health plan. Employees that have lower compensation have benefited from tax credits and HIP 2.0 Expansion. It would cost these Hoosiers more money on a group plan vs. subsidized health insurance. Most small group employers will contribute towards the employee only portion, which can create financial hardship for the employee to pay for dependents.
There are some solutions to meeting participation; the first thing is if the employee is open to the idea. If they are then looking for subsidized coverage for the dependents. Another solution is offering multiple choices of health plans.
Small group, health insurance companies, have decreased in Indiana with the passing of the ACA. This may be a result of the guaranteed issue in the fully insured market.
Insurance companies that are offering small group health plans are Anthem, UnitedHealthcare, & IU health plans. When it comes to level-funded plans, where there is underwriting, Indiana has Starmark, All savers, National General, Lifestyle and a handful of other carriers.
Most of the level funded carriers have minimum employee requirement. With most of them, you need at least five employees to take the health plan. However, National General will accept just two employees. These can be great solutions for controlling cost. Since these plans are underwritten, insurance companies can offer lower premiums. This can create up to a 30% saving vs. the fully insured market. So there are options out there!
Contact Nefouse & Associates for your Group Health Insurance Indiana
If you are a small company, offering a group health plan may not be something you want to do, now you may have too. Contact us today to learn more.