As of January 1, 2016, employers with 51-100 benefit eligible employees are now considered small group employers. As a newly labeled “small business,” you may see rate increases of 20-30%, depending on your group, if you haven’t already.
Why the big jump in rates?
The change is tied to rules that apply to small groups. Small groups are charged with what the insurance industry calls “age-banded” rates. Age-banded simply means age-based. In other words, cost is assessed for the age of each employee and spouse in the group. The shift impacts many employers, especially technology companies since many employ under 100 employees, and adds another obstacle in the quest to offer affordably priced health care coverage.
If you are one of these employers, the following is a quick summary of things to be aware of.