How the ACA is Affecting Mid-Sized Finance Companies

According to a recent article published by the Hedge Connection Blog, mandated changes implemented by the Affordable Care Act (ACA) will have a large impact on U.S. firms who have between 51-100 employees starting in January 2016. The article states:

“Companies with 51-100 employees, who previously enjoyed the ‘economies of scale’ benefits associated with being in the large group health care market, will become part of the small group market as of their first renewal on or after January 1, 2016. While this change will happen across the U.S., we believe its impact will be very significant in New York State,” (Affordable Care Act (ACA) Changes Are Coming to U.S. Mid-Sized Businesses with Significant Impact for New York’s Finance Firms: Here is What You Need to Know to be Prepared).

This change will particularly impact New York State because there is a larger amount of mid-sized finance companies here compared to anywhere else in the country.

Business can expect a multitude of changes in January 2016, including an increase on healthcare premiums. Other predicted changes include the following:

  • Access to rich benefit plans many of these companies previously had will be reduced
  • Benefits will be selected from a group of plans that the carrier offers
  • “Small Group” market plans will be eliminated
  • Deductibles and out-of-network coverage will be affected
  • Advanced infertility treatments and other specific services will be lowered

For more information on how the ACA’s changes will severely affect mid-sized finance companies, please read the Hedge Connection Blog’s article here.