Obamacare: Another Delay, Uncertainty About Premium Increases

SHOP exchanges are delayed until 2016 in some states

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The rollout of the Affordable Care Act has been fraught with numerous delays, creating an unstable environment for long-term planning. Small business owners in 18 states are now grappling with yet another delay.

In June, the Obama administration approved an extension for the Small Business Health Options Program, or SHOP, exchanges, delaying full implementation until 2016. Kevin Kuhlman, manager of legislative affairs at NFIB, says the latest delay was approved because of insurance companies’ concerns about technology problems and adverse selection.

“The SHOPs have been an afterthought of Obamacare’s implementation,” Kuhlman says. “Because of these problems, small business owners are left with fewer choices and more uncertainty.”

According to The Hill, 18 states and Washington, D.C., are now operating SHOP exchanges, and 14 more states will launch their marketplaces in 2015. But small business owners in Alabama, Alaska, Arizona, Delaware, Illinois, Kansas, Louisiana, Maine, Michigan, Montana, New Hampshire, New Jersey, North Carolina, Oklahoma, Pennsylvania, South Carolina, South Dakota and West Virginia will not have access to the greater variety of health insurance options the SHOPs are meant to provide.

Plus, Kuhlman says, beginning this year, small business owners can only claim the small business health insurance tax credit by purchasing coverage for their employees through the SHOPs. Kuhlman recommends small business owners ask their insurance agent or broker about 2015 options, including further renewals of current plans and cost/coverage impacts if they must purchase an ACA-compliant plan.

Meanwhile, the outlook for premiums remains murky and will vary by state. NFIB’s research indicates a trend toward further increases, based on insurance company citations about increased prices and taxes and new enrollee health status. However, Kuhlman says insurance companies with significantly higher 2014 premiums may request decreases, while those with significantly lower premiums may request increases.

Want to shop on an exchange that actually works? NFIB’s Health Insurance Exchange can help you find the right policy for you and your employees, at the right price.

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