ACA insurer participation declines
As I read through many publications available to me as an independent broker in the insurance industry and as a member of many industry-related associations, I have come across some information known to the industry, but may not be known or understood by someone not in my industry.
ACA insurer participation declined by 24% in 2017. What does that mean to you? On a nationwide basis, a quarter of the insurance companies have declined to participate in the Affordable Care Act health insurance marketplace. When we look at Iowa, and we get upset and concerned about companies exiting the market, let it be known: there’s no bad guys here, it’s the nature of the industry’s response to the ACA. It merely is unaffordable. The intentions in the beginning were to ensure all people lower insurance costs, keep your own doctor, etc.
Approaching 8 years into this law, it has played out to be 180 degrees the opposite direction. The horrendous double digit increases in premiums and the reserves held by these companies (reserves are dictated by the governing authorities, whether that be federal or state) is still not substantial enough to offset the losses and remain solvent. For the betterment of millions, the companies are doing what they feel is the responsible thing to do for the betterment of everybody.
1 in 3 Millennials has turned down a job in part because of poor insurance offerings.
Many employers are focusing on the benefit offerings as well as competitive salaries to attract and retain quality employees. Small business is not mandated to provide anything now. However, I have encouraged small business owners to find room in the budget to offer their employees quality health insurance. I take into consideration the least compensated person and the highest compensated person when making my recommendations so as not to leave anybody out. Different ages will also dictate different needs, wants and ability to pay.
After a comprehensive review, I come back to the small business employer with a recommendation. I have been met with a 98% positive response. This ensures the employer is going to be sustainable as a small business by taking care of the people who make the business happen. If the employees are productive and happy, the Client-base will grow. It’s a win-win for everybody. Please give me a call, my consultations are free.