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“Small-Business Insurance-Shopping Feature Is Delayed” by Sarah E Needleman and Louise Radnofsky. Wall Street Journal (Online) April 2, 2013.

Found at:

http://libproxy.uww.edu:4064/abicomplete/docview/1322208528/13D3`18B27E74712F0FE/1?accountid=14791

I have chosen an article that talks about small business insurance options after the federal health law goes into effect. The article states that one of the main selling points of the 2010 affordable care act was the pledge to lower health care costs for small businesses. The small business health options program or SHOP is to set up a marketplace or exchange for small business owners. The exchange set up on a per state basis and would take one payment from the small business and the exchange would disperse the money to various insurance providers that would provide service to the entire staff of that small business. This article points out that it is going to take a little more time to set up the exchanges and is proposing a transition solution that would allow for businesses only one option for insurance using the exchange in 2014. In 2015 the plan is to roll out the option for a full range of plans.

The main concept of the article uses the term “marketplace” or “exchange” relating to health insurance. Other articles related to this topic refer to the exchange or marketplace as HIX or Health Insurance Exchange. The exchange is a set of government regulated and standardized health care plans. The overall scope of the exchange is to help insurers comply with consumer’s protections, compete in cost effective ways and provide insurance coverage to more people. The exchanges themselves are not the insurer but regulate what insurance companies are able to participate in the exchange. An exchange will be set up by an individual state with the option for that state to set up or join a multi-state exchange. If a state chooses not to set up an exchange then the government will step in a set up an exchange for use by their citizens.

Small businesses are very big influence in our society and some say they are what drives the American economy. One major concern of small business owners in the rising cost of health care. The example in the article of a small business owner in New York stated, “The delay comes with disappointment”. Her business paid 100% of the healthcare costs a few years ago but as premiums were on the rise she cut down to paying 75%, leaving the employee with the remaining costs. With the delay of the exchange for another year those employees are continuing to pay an unexpected part of the premium. With the rising costs of healthcare premiums many have had to adjust financially to accommodate the change and/or consider less coverage. Healthcare is a vital part of the financial planning process. Being underinsured can result in major expenses out of pocket and ultimately increasing the chances of bankruptcy and financial disaster. It is essential to understand healthcare options and how it is going to transform in the future. Small businesses and the employee’s help drive and sustain our economy, it is essential that an adequate well thought out plan be implemented in a timely manner so our economy can continue to rebound without any more possible hiccups

The overall article is simply implying that the small business insurance exchange is going to be simplified in 2014 to one option at the state level. This has obvious cost concerns for small business owners and also whether the insurance options will offer adequate coverage. I personally believe that if the health care procedure is going to change that the government should implement the program as it initially intended on doing. By giving one option at the state level and labeling it a transitional option leads me to believe the process was not entirely thought through. Additional reading at the small business association in the following link http://www.sba.gov/sites/default/files/Health-Insurance.pdf states that there is a relationship between the size of a small business and whether they will offer health insurance. An additional concern for me would be as healthcare premiums rise and the healthcare reform takes time to implement, those smaller firms are going to pay less of the healthcare costs leaving those employees with fewer take home pay and the possibility for little to no options for health insurance. When the exchange gets set up it will definitely be an advantage to the small business and employees especially those without larger human resource departments to negotiate terms and better insurance options.