Employers Avoid Obamacare Mandates for up to 11 Months

On 1/1/2014 the majority of the Obamacare mandates kick in for employers with under 50 employees.  That includes Community Rating and Age Band restrictions, as well as the elimination of any Pre-Existing condition restrictions on new enrollees.

So what is not to love?   Not much, unless you are the one paying the bill.   Many insurance companies, and actuaries have predicted that these mandates could increase the cost of coverage by 20 to 50% on a monthly basis.

The way the law is written, the mandates will kick in on the renewal date / anniversary date of the employer-sponsored plan in 2014.

As a way to avoid the mandates for as long as possible, insurance companies are offering “Early Renewals” to employers.  These renewals would all take place on 12/1/2013.  That would mean that the employer would not be subject to the new Obamacare Mandates until 12/1/2014…..kicking the pain down the path for up to 11 months.

The funny thing about this solution, is that most “Early Renewals” will include premium increases that would have occurred months later (at the plan renewal date).  So as a result, the employers are electing to take a cost increase early, in order to delay the effects of Obamcare as long as possible.

Again, I feel the need to ask.  “If Obamacare is such a good thing for American, why are so many people working so hard to avoid it?”


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