The Affordable Care Act has changed the insurance industry. Perhaps the most notable effect of Obamacare is the rise in costs for group health insurance for businesses, which has affected everyone from small businesses to massive conglomerates. For instance, CNBC reports that its parent company's enrollment guide explained why premiums increased.
"(F)ederally mandated health care changes will require Comcast-NBCUniversal to pay new fees and implement plan design changes that will contribute to the increased cost of our plans," the guide indicated.
The news source goes on to point out that some businesses will have to pay significant fee increases moving forward. Jerry Burns, a manager for an electronics firm, told CNBC that his company's premiums will increase between 8 and 9 percent.
Another problem is that insurance rates for older employees are increasing as well. According to Kaiser Health News, data from the Consumers for Affordable Health Care shows that most of Maine's citizens over the age of 55 saw their premiums go up recently. Meanwhile, almost the entire under-40 population was given decreases.
Because of their advanced age, senior employees are believed to have more health risks than their youthful counterparts, so they're charged higher premiums. This can have a negative effect on employers whose staffs are comprised of baby boomers and members of other older generations. Companies in turn will have to cover exorbitant rate hikes for plans offered to these workers.
A possible solution
Fortunately, there is a possible solution that can help enterprises keep costs at a manageable level.
Most rate increases will be enacted on January 1, 2014. To avoid the heightened prices, businesses can change the start dates for their billing periods to December 2013, which would ensure that they'll be able to keep their current premiums for at least another 12 months.
This strategy is simple and can help a business avoid massive headaches moving forward. Staff members will appreciate their employers for taking this step and avoiding massive insurance hikes.
If you think this approach would help your organization, consider working with an HR outsourcing firm like Triton HR. Our team can assist you in navigating the insurance waters and properly managing your paperwork so that it'll be filed with the proper date. Our personnel do everything possible to ensure that you can keep your current rates and won't have to pay new premiums because your employees are getting on in years.