Rate Review Brings Welcome Health Insurance Price Cuts for California Small Employers
Statement by John Arensmeyer, CEO, Small Business Majority:
Kaiser Permanente's recent announcement that it is rolling back healthcare coverage rates in California is welcome proof that cost containment provisions in the Affordable Care Act are working to give small businesses some much needed relief from soaring healthcare costs.
Kaiser is rolling back rates by 1.2 percent for employers whose contracts are up for renewal between July and December 2011. Additionally, a total of $13.7 million in healthcare premium credits will be allocated for those who saw rate increases on July 1, 2011. The credits will begin as early as next month.
This is great news for small business owners because they feel the pressure more than most when health insurance premiums rise. High coverage costs are a significant burden for small employers and can hinder their ability to hire, which is crucial if we are going to rise out of the economic doldrums.
Fortunately for California small business owners, the ACA gave the state the authority to review insurance rates and tell companies they are too high when insurance companies increases are not properly justified or actuarially sound.
The Kaiser rollbacks put money in California small business owners' pockets where they can use it to put the state back to work. While the new healthcare law is not perfect, there are provisions like this one, calling for long overdue adjustments to rate review practices, that can help get small employers back on their feet.
Small Business Majority is a California-based, national nonprofit, nonpartisan small business advocacy organization founded and run by small business owners and focused on solving the biggest problems facing small businesses today. We speak for the nearly 28 million Americans who are self-employed or own businesses of up to 100 employees. Our organization sponsors scientific research that guides us to understand and advocate on behalf of the interests of small businesses across the country.