Small businesses are about to get zapped with more Obamacare sticker shock. According to an article published yesterday, Feb. 25, Obamacare, now being referred to as the Affordable Care Act (ACA), may increase premiums for up to 11 million employees of small businesses.
The Centers for Medicare & Medicaid Services released a report with this conclusion. Apparently, these premium increases are tied to Obamacare's requirement that premiums can't be based on a person's age. Healthy young people will pay the same rates as older, less-healthy insureds, driving premiums higher for young people but reducing premiums for older people.
As a result, more small businesses will see increases than decreases. The report found that 65 percent of small businesses will face increased premiums, while only 35 percent will see decreased health insurance premiums.
However, the estimate is just that: an estimate, since many small businesses renewed their health insurance plans in 2013 to avoid the higher premiums that took effect on January 1, 2014. There are also other factors that will affect health insurance premiums that were not taken into consideration in this estimate, and the report did not provide estimates for how much premiums are expected to increase or decrease for small businesses.