Issue link: http://www.insightdigital.biz/i/222066
Business Services that it is such a complicated law and everybody's situation is different," she says. "Among large employers, everyone offers pretty much similar benefits, but small employers have to be creative to get tax-free benefits to employees." Cafeteria plans will still be permitted, Branshaw says, but employers who offer them also have to offer group health coverage. The law aims to take individual insurance products out of the small business market and have individuals go to the state marketplace to buy coverage from standardized plans that allow consumers to compare coverage and prices. (Branshaw was speaking in mid-November; new regulations in October had changed the rules for cafeteria plans and she was working on making the changes for 51 clients, and that was before President Obama changed the rules for individuals.) Hanson says the law is really focused on the individual and small business market. There are some plusses in the law, but with a price, she explained. "You cannot open the arms of the carriers to more people with no underwriting and have it cost less," Hanson says. For one of Hanson's clients, who faced a 60 percent increase because the staff had a range of health problems, she has advised waiting until January when their health records won't be a factor in getting coverage. Some carriers have chosen to sit out 2014 because they can't measure their risks, she added. Other carriers are offering clients the ability to renew Dec. 1 for a year, regardless of when their existing policies expire, and many of them are offering reductions in premiums or very small increases. She can quote from seven carriers and has found some significant savings by moving clients to new plans. One client achieved a 40 percent reduction for a small group that had a high-risk individual who has since left. The group's existing carrier wouldn't change the premium, but new carriers reviewed the risks and offered lower rates. "I think carriers have looked at their blocks of business and decided to keep these groups on their books." Hanson advises most clients to renew and then they will have a year to let the dust settle. Wisconsin declined to set up its own health exchange, so residents who need to buy health insurance individually are stuck with the troubled federal health exchange site. For a view of how a state site can work, visit Minnesota's: www. health.state.mn.us/mnsurenetworks/. Employers should stay in touch with their agents starting about midyear because all these policies that are renewing in December will also be expiring at the same time. "Next December is going to be a killer," Hanson says. Maneuvering through a challenging economy? Navigating the rapid pace of change? Attracting top talent? Bring it on! " " I want to make sure my team is prepared for success no matter what the challenges. PERFORMANCE-MINDED BUSINESS SOLUTIONS training@morainepark.edu 920-924-3449 morainepark.edu/training Six Sigma I Leadership & Supervision Technical Skills PERFORMANCE-MINDED BUSINESSISOLUTIONS I Customized Training Solutions I Strategic Development 28 | Insight • D e c e m b e r 2 013 w w w. i n s i g h t o n b u s i n e s s . c o m