Many thanks to Patrick Carroll, experienced founder of TCIG Pacific Insurance Services, who was kind enough to provide us with insight on the impact the Affordable Care Act will have on small businesses.

The ACA (Federal healthcare reform) will have dramatic effects on small employer group health plans in California. Several major carriers including HealthNet and Blue Shield have released their 2014 plan portfolios and the results aren’t pretty. In cases we have reviewed monthly rates are increasing dramatically. In addition, the ACA forced carriers to scrap their current plan designs due to various coverage mandates; as a result insurers are introducing entirely new coverage options for 2014. Brokers and plan sponsors will need time to study these new programs but our cursory review indicates unusual, severely contorted benefit designs to meet ACA requirements and significantly higher premiums due to ACA pricing directives.

In light of this massive restructuring of plans and premiums most carriers in California offered small employers the option of advancing their 2014 plan renewals to December 1st 2013. Doing so preserves the current set of plans and pricing methodology until December 1st 2014 and postpones the 2014 changes until December of next year. This delay will allow all parties 12 months to gain familiarity with the new programs and rate structures.

The Early Renewal notification deadlines for AEtna, Blue Shield, and Kaiser have passed but plans insured by Anthem, HealthNet, and United Healthcare can still make the election if notice is submitted to the carriers before their respective deadlines. Small employers insured by one of these carriers are encouraged to discuss Early Renewal with their brokers immediately or to contact TCIGPacific Insurance Services for a no-charge consultation.