In the wake of the health care reform, alternative funding solutions for health benefits continue to gain traction among small to mid-size groups.
Pending changes to small group rules in January 2016 are driving demand for the funding solutions. Most prominently, groups with 50-100 employees will be subject to community rating legislation that governs how rates are developed and the type of coverage offered. Most states are also changing the definition of employee to the federal full-time employee definition, broadening the scope to include union employees that may have been excluded under previous small employer definitions.
Here’s how the new rules will affect small to midsize groups, including potential financial impact, solutions available to mitigate potential costs and the pros and cons of renewing early.