Sunday 23 November 2014

Small business insurance exchanges seek rebound


Early enrollment for the health overhaul’s small business insurance exchanges fell far short of the 2 million workers who were expected to sign up this year. The shortfall calls into question the future of the exchanges as they begin accepting enrollment for 2015.
About 76,000 people bought coverage on 18 exchanges through June 1, according to a report released this month by the Government Accountability Office. Enrollment figures from 33 state exchanges that are run through the federal government are not yet available, but researchers expect those totals to be low as well.
“It’s still unclear whether or not these are going to take off in a substantial way, but we can’t assess that from where we are now,” said Linda Blumberg, an economist for the nonpartisan Urban Institute who has studied the exchanges.
The Small Business Health Options Program opened this year to companies with 50 employees or fewer. Its exchanges were expected to give more options and better prices to small businesses that can pay as much as 20 percent more for their coverage than larger companies.
But technology problems hampered their debut. Customers in many states found few coverage choices, and they got better deals outside the exchanges.
Government officials say they’ve worked to improve the exchanges, and coverage choices are expected to grow in the coming years.
The insurance exchanges for small businesses and for individuals opened for business for a second year on Nov. 15. The Obama administration said that 100,000 people signed up for health insurance on the first day of open enrollment.
The small business exchanges are designed to give companies a way to pool resources and get insurers to compete more for their business. But several of the state-based exchanges stumbled in their debut last fall when they were unable to get an online enrollment option functioning.
Many employers never considered the exchanges because they renewed their insurance late last year. That meant their coverage carried over through most of this year.
Some companies skipped offering health insurance altogether and simply gave their employees money and sent them to the overhaul’s other exchange, which is designed for people buying insurance on their own, not through an employer.
Broker Ken Statz said the prices for what was offered on Ohio’s small business exchange weren’t competitive, and temporary tax credits that help some small business buy coverage may have to be beefed up.
Businesses did find benefits in other markets. In Washington, D.C., the small business exchange has enrolled about 1,300 people, not counting congressional employees.
“For us, the numbers are great,” said Mila Kofman, the exchange’s executive director.
Federal officials have been working to improve the exchanges. Online enrollment options will debut in several states this month.
The websites have also added a portal that allows employers to designate a broker who then handles the details of their enrollment. That’s a key development because brokers are the traditional way small businesses find coverage.
The Associated Press

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