Participation on Group Health Plan

[ABC]

How many of your group health plans are barley meeting participation?

Once you get into groups over 20 lives it seems it's always a battle to meet participation.

In 2014 these type of groups are going to drop coverage.

You take a case where the employee only premium is $450 with 23 employees. The employer is paying 75% and you still only have 13 people taking this plan. At $112 a month cost to the employee, it does not get any cheaper. If they refuse to participate, why would an employer continue to carry a plan?

 

[stuy119]

Participation rules will be gone as of 1/1. No more fighting for participation - yay!

 

[leevena]

Participation rules will be gone as of 1/1. No more fighting for participation - yay!

Could you please explain. I did not hear this, in fact last I heard was that PPACA did not address the issue and that it was still up the carriers.
Thanks.

 

[stuy119]

Could you please explain. I did not hear this, in fact last I heard was that PPACA did not address the issue and that it was still up the carriers.
Thanks.

At least here in IL, there will be no more participation requirements. That's on fully-insured.

I should have specified more initially to a micro-level.

 

[ABC]

If participation levels are removed by the carriers that gives small a group a chance. A lot of owners and top employees are not going to qualify for exchange subsidies.

 

[somarco]

Still having trouble understanding why MOST small employers would consider group insurance. With GI + subsidy I see very little reason to pony up for health insurance unless you are in a business with highly skilled workers and a competitive market for those employees.

 

[houcoogster]

Still having trouble understanding why MOST small employers would consider group insurance. With GI + subsidy I see very little reason to pony up for health insurance unless you are in a business with highly skilled workers and a competitive market for those employees.

It could very well be that in the near future employees gravitate to the employer that does Not have a group plan. Gotta luv those unintended consequences...lol.

 

[somarco]

There was something in the local paper a few weeks ago about how Obamacare was going to be a boon for self employment. No more job lock.

Leave your company. Start your own business. Get Obamacare.

Does Prepaid Legal count as a real business?

 

[stuy119]

There was something in the local paper a few weeks ago about how Obamacare was going to be a boon for self employment. No more job lock.

Leave your company. Start your own business. Get Obamacare.

Does Prepaid Legal count as a real business?

While that's great, I think people underestimate the success level of the average self-employed. I don't know the recent stats, but it was 1/6 was successful enough to make a living wage as recently as 8 years ago.

Those aren't great odds.

 

[somarco]

Never said it was a good idea.

Yes, a lot of folks get burned on these start ups, especially franchise.

A few years ago in Atlanta someone opened a MASSIVE art supply store in a ritzy neighborhood. Even with free rent and a huge grand opening with probably 50 employees the store closed in 90 days.

Someone lost a buttload on that. I believe the franchise fee was something like $40k.

Then there was a beignet place about a mile from the house. Place was usually crowded in the AM and late afternoon but not much beyond that. Guy spent a fortune on advertising and especially coupons. I still have a coozy from the opening.

Place lasted less than a year.

And there is the gourmet popcorn store (Heaven Popped or something like that). Opened and closed in 4 months.

Self employment sucks. If I weren't such a horrible employee I could keep a job long enough to retire.