By Amy Alkon
shared this story
from Advice Goddess Blog.
How People Who Get Insurance Through Their Small-Biz Employer Will Soon Be Screwed By Obamacare
Ariana Eunjung Cha writes in the WaPo about the second wave of health-insurance disruption, which affects small businesses, and the Obama admin’s lie when health insurance plans were getting canceled this past fall, saying that the cancelations only affected the small minority of Americans who, like me, buy individual policies. (As if that’s okay.):
But according to industry analysts, insurers and state regulators, the disruption will be far greater, potentially affecting millions of people who receive insurance through small employers by the end of 2014.
While some cancellation notices already have gone out, insurers say the bulk of the letters will be sent in October, shortly before the next open-enrollment period begins. The timing — right before the midterm elections — could be difficult for Democrats who are already fending off Republican attacks about the Affordable Care Act and its troubled rollout.
Some of the small-business cancellations are occurring because the policies don’t meet the law’s basic coverage requirements. But many are related only indirectly to the law; insurers are trying to move customers to new plans designed to offset the financial and administrative risks associated with the health-care overhaul. As part of that, they are consolidating their plan offerings to maximize profits and streamline how they manage them.
“If they do it one way, the word canceled gets attached to it. If they do it another way, they say they are amending the policy. It sounds more gentle but it’s the same thing,” said Gary Claxton, an expert in private insurance at the Kaiser Family Foundation. “The basic point is, for many people in the small-group market at some point soon their coverage is going to change.”
The transformation of the small-group market is just one of the many ripple effects of the Affordable Care Act that will reshape the insurance industry in coming years. With millions of previously uninsured people getting coverage, the insurance industry’s business model is being upended, and that’s leading to changes involving all sorts of products, not just those sold through the online marketplaces to individuals.
All of you Obama voters, about now, are you wishing you’d voted differently?
And also from the piece, check out how the government has yanked away people’s ability to buy health insurance through an association:
Also facing disruption are people who purchase insurance through professional or trade associations and don’t have any employees. This includes some doctors, …read more