Connecticut Health Insurance Strategies for 2013
In anticipation of upcoming drastic changes to the individual health insurance market brought about by Health Care Reform, HIQS Group has already begun assisting Connecticut based small businesses with fewer than 50 employees in significantly reducing their current health insurance costs.
Current un-insured’s will be required to own a health insurance policy either through their employer, or purchased as an individual as of January 1st, 2014. Connecticut residents will have the option to either procure health coverage through private companies, or through the Connecticut health insurance exchange, which is on schedule to be up and running by the fall of 2013. The exchanges will provide a mechanism for those who currently can’t afford coverage to receive a subsidy in order to obtain a health plan.
As of this release, companies with 50 or fewer employees not offering health care to their employees will not face a tax. This, coupled with the fact that all individual and group market health insurance policies will be guaranteed issue regardless of health status, now provides the ability for small employers to significantly reduce their premium costs by enrolling their employees in individual market plans. Implementing this strategy for 2013 will provide the most premium savings for these companies, and here is why.
In Connecticut, the individual market based health insurance premiums are still 30% to 40% less expensive than their group market counterparts. This is due to the fact that until 2014, these plans are still underwritten based upon health status. Companies can still deny, rider, amend, or rate up applicants upon underwriting review. Further, group market plans tend to offer certain benefits not offered in the individual market plans, with the most significant in Connecticut being maternity.
For 2013, companies can give serious consideration to moving current enrollees who qualify to individual market plan, leave those who do not qualify on the group plan through 2013, and then they can move to the exchange or private insurance based guaranteed issue plan for January 1st, 2014. Companies will have a mechanism which will allow them to pay individual premiums, and fund potential deductible expenses for employees without increasing their gross income.
Our most recent case study is a Connecticut based group with 8 employees on a group health plan. 6 are enrolling in an individual plan, while 2 are remaining on the group plan. Overall savings for this company beginning on October 1st, 2012 will be 24%. Interestingly, the individual based policy will feature both lower deductibles and maximum out of pocket costs relative to the group based plan.
All of us at HIQS Group are excited about this strategy as we are constantly seeking out ways to provide premium relief for our clients, while still offering quality health benefits for employees.
For more information please contact our office at 203-730-8304, or Kevin Murray directly at