The health insurance overhaul will force nearly 70% of employers to change or drop their health insurance, the exact opposite of what was supposed to happen according to President Obama. Forcing employers to change their group health insurance plans means higher premiums because the new plans must offer more benefits the government now requires like lower deductibles.
The employer will be forced to change to these more expensive medical insurance policies when they make minor changes to their existing group health insurance at renewal time. These grandfathered plans will no longer be grandfathered when making these changes and must now abide by the new health insurance laws and mandates.
Abiding by the new mandates in the health insurance law means higher premiums.https://higginscompanies.com/health-insurance/student-health-insurance/ Higher premiums mean that employers will compare the new higher premiums to the new federal penalties for not offering group health insurance. Once it becomes apparent that dropping the group health insurance and paying the fines instead is in the best financial interest of the stockholder’s that is exactly what will happen. When the competition sees that their competition has dropped their group medical insurance plan they will do the same. And so on and so forth.
This has been the governments plan from the beginning. Have everyone dependent on the government for health insurance and many other things. One way or another the Democrats want a single payer health insurance system, health care reform being the first step.
Michael Higgins
602.405.8769
An Arizona health insurance broker.