Some Small Firms Drop Coverage Due To Health Law Options
Some employers increasingly view the health law's online marketplaces as an attractive option for their workers, and WellPoint said Wednesday that its small business plan membership is declining more quickly than expected.
The Wall Street Journal:
Small Firms Start to Drop Health Plans
Small companies are starting to turn away from offering health plans as they seek to reduce costs and increasingly view the health law’s marketplaces as an inviting and affordable option for workers. In the latest sign of a possible shift, WellPoint Inc. said Wednesday its small-business-plan membership is shrinking faster than expected and it has lost about 300,000 people since the start of the year, leaving a total of 1.56 million in small-group coverage. (Wilde Mathews, Loten and Weaver, 10/29)
Bloomberg:
Obamacare’s Success Has Small Business Dropping Coverage
U.S. small businesses are dropping health insurance for their workers, as Obamacare lets them send employees to new marketplaces where they can often get subsidies from the government to buy coverage. WellPoint Inc. (WLP)’s small business insurance products lost 300,000 people this year, the company said today. Business owners are dropping coverage they previously bought through WellPoint and other insurers, and instead sending employees to shop for it on the government exchanges created under the Patient Protection and Affordable Care Act known as Obamacare. (Chen and Gilblom, 10/29)
In related news -
The Seattle Times:
Small Businesses Can Enroll In Obamacare Statewide
Small businesses throughout Washington — those with 50 or fewer employees — can now shop for and enroll in health insurance plans through the state’s insurance exchange. The exchange got off to a slow start for businesses this year when only one insurance provider, Kaiser Health Plan of the Northwest, agreed to sell plans in the marketplace and only in Clark and Cowlitz counties. For coverage beginning January 2015, small employers statewide can shop the exchange for coverage from Moda Health, and Kaiser will continue selling in the two southern counties. A total of 23 different plans are available from the two insurance companies. (Stiffler, 10/29)
