If you want to obtain less expensive health insurance for your 50-or-fewer employees, you will want to keep reading.
The Affordable Care Act (ACA) states that every health insurance plan must contain ten well-defined essential health benefits. These benefits were determined by bureaucrats who do not necessarily understand the needs of any specific patient. For example, an unmarried man does not need an obstetrical coverage “essential benefit,” yet he is forced to pay a higher premium for it (see our full report on ACA solutions).
President Donald Trump’s administration has opened the door to less expensive “association health plans” which allow small groups to join together to purchase health insurance.
At least one state has recently passed a law to allow insurers to sell less expensive plans that offer more choices to consumers, by not requiring plans to include the ten essential health benefits.
The State of Alaska is now trying to determine if there is demand in our state for such plans. They have created a short survey for small businesses to gauge interest. In our opinion, all small businesses should participate in the survey, even if you have not yet offered health insurance to your employees; if costs were reasonable, more businesses might consider offering this benefit. We encourage you to take the survey and let them know that you “support the concept of allowing insurers to offer less expensive health insurance coverage options in the small group market that do not provide comprehensive coverage of all 10 essential health benefits required under the Affordable Care Act.”
A free market does not dictate the choices offered within the market, and competition within a free market is the best method for bringing down health insurance costs.