Small-business owners scramble to avoid cost hikes related to 'Obamacare'

Thousands of small businesses around the U.S. are racing to renew their health insurance policies Dec. 1 to beat large premium increases their brokers say will hit them Jan. 1 when the Affordable Care Act takes full effect.

Some health insurance brokers also say 2014 may be the last year many of the companies even offer health insurance.

Insurance brokers from several states told USA Today that 60% to 80% of their small-business clients — those with 50 employees or fewer — are renewing their policies early to skirt the law. Companies with more than 50 employees aren't allowed to adjust their renewal dates.

Many companies are still waiting to hear what rates they'll be facing in 2014, as state insurance commissioners are backlogged with tasks related to compliance with the health-care law, known as Obamacare.

The National Federation of Independent Business estimates 42% of the at least 7 million small businesses with 50 or fewer employees offer health insurance. On Friday, the group released a survey in which 64% of 921 small-business owners and operators reported they pay more for insurance premiums per employee in 2013 than they did in 2012.

Beginning this past summer, insurance companies warned brokers and companies that rates could rise dramatically because of the ACA, and some of these agents say they are seeing increases of 30% to even 100% in premiums, especially for businesses that have young workforces. That's because companies will no longer be able to charge older people more than three times they do younger ones. In some states, there is no limit on how much more they can charge older employees than younger ones, and it can be five times more in some states.

Via: The Town Talk

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