Why should your employment dictate whether your health insurance is worse or exponentially better than your neighbors? Shouldn’t all health plans be the same? The human condition does not change depending on who you work for. The individual who works for the State of California, a union, or a self-insured plan can have the same health conditions as a self-employed individual. People routinely move from large group plans to individual and family plans and their health conditions don’t change. But the price and member cost sharing is far higher under small group and individual and family plans than it is with some of the union plans. Is that fair?
Sole proprietors with small group plans might be surprised when they are notified that their current health insurance company will be discontinuing their coverage in 2014. With the advent of guarantee issue individual and family plans under the new Affordable Care Act (ACA), some carriers have already decided to discontinue issuing small group plans to sole proprietors.
Even without any mandated plans under the ACA, businesses have found it necessary to add and drop plan offerings in an attempt to stem the escalating premium increases. What isn’t changing is that health insurance premiums will still be deducted pre-tax on payroll.
Small businesses will not be under the employer responsibility requirement if they have fewer than 50 employees. I don’t expect small, medium or large businesses to jettison their existing group insurance plans.