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With the health care laws full implementation right around the corner the game is about to change.
I have current case that is looking at dropping group coverage on 37 employees. With PT's they would be over the 50 EE mark.
They have had 2 very bad claims years. 200% loss ratios and now getting crushed with a 32% rate increase with a projected loss ratio of 1,000%. 2014 most small group plans will get hit with at least a 32% for QHP, Community rating, & essential.
If they do drop, then we will look at insuring everyone on Individual plans. About half will qualify for Medicaid. Of the 18 remaining, about 12 with get through underwriting on an Individual plan.
Now in 2014 they would all qualify under an exchange plan. Once the comp is determined on the exchange, instead of placing 12 lives I would be looking at 37. Huge difference.
This group has crunched the number with the future penalty and a defined contribution. It is still 80K cheaper for them to drop.
These type of situations will become even more common than what they are now.
I have current case that is looking at dropping group coverage on 37 employees. With PT's they would be over the 50 EE mark.
They have had 2 very bad claims years. 200% loss ratios and now getting crushed with a 32% rate increase with a projected loss ratio of 1,000%. 2014 most small group plans will get hit with at least a 32% for QHP, Community rating, & essential.
If they do drop, then we will look at insuring everyone on Individual plans. About half will qualify for Medicaid. Of the 18 remaining, about 12 with get through underwriting on an Individual plan.
Now in 2014 they would all qualify under an exchange plan. Once the comp is determined on the exchange, instead of placing 12 lives I would be looking at 37. Huge difference.
This group has crunched the number with the future penalty and a defined contribution. It is still 80K cheaper for them to drop.
These type of situations will become even more common than what they are now.
