Obamacare Increases Affecting Small Businesses - My9 New Jersey

Obamacare Increases Affecting Small Businesses

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Moorsetown, New Jersey (My9NJ) - As New Jersey small businesses prepared to provide health insurance for their employees in 2014, many were greeted by a shocking surprise – drastically increased rates as a result of the Affordable Care Act.

Lynn Johnston is an employee benefits broker. She explained how a change in the ratings structure for small groups has caused rates to skyrocket anywhere from 30% to 75%.

“The change in the rating structure for groups from 2-50 lives has completely changed so the carriers are kind of handcuffed in regards to how they can rate the groups, which is causing the rates to skyrocket,” she said.

Optimal Energy is one of Lynn’s clients and a small NJ business that employs 10-12 people at any given time. Donna Fahey spoke about the shock she felt when she received notice that her rates would increase so drastically. “(I was) very overwhelmed. Very overwhelmed. Very scared because health coverage is very expensive,” she said.

Lucky for Donna, Lynn was extremely proactive about helping her clients and found that carriers were willing to help. If a small group plan was set to renew in the 1st quarter of 2014 at the drastically increased rates, many could instead renew before the end of the year and experience much smaller, more typical increases.

Unfortunately, for those who weren’t able to renew early, many carriers are simply dropping individuals and small groups that don’t meet the standards of the Affordable Care Act.


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