The state’s health insurance marketplace has been congratulated for its success in getting individuals enrolled, but insurance brokers say small businesses aren’t signing up.
Access Health CT provides plans for companies with under 50 workers that want to provide insurance for their employees through a program called SHOP, or Small Business Health Options Program.
Connecticut launched its SHOP program last year, ahead of many states, with the intention of providing more choices for small businesses. But at a recent advisory committee meeting, broker Chris McKiernan, of Abercrombie, Burns and McKeirnan, said the advent of the Affordable Care Act has reduced competition for small business health care, because of the new coverage rules for small group plans.
McKiernan also said he hasn’t sold a single SHOP plan to his clients. "It certainly wasn’t ready for prime time last year, for a variety of reasons," he told the meeting. "Plan summaries weren’t ready; the tax credit was very difficult to try to talk to our clients about; and even with the potential of a tax credit, many of them were somewhat nervous, because they associated Access Health CT as a government agency."
Tim Pusch, a broker at Burns, Brooks and McNeil, said the whole new health insurance structure is proving disruptive to employer insurance. "I already have experienced groups saying, I’m not going to offer a group plan anymore; let my employees go and buy their own," he said, "which I know was not the intention of Congress, to encourage employers to stop offering medical plans. But it is an unintended consequence to some degree, and I believe we may see more of it in this upcoming renewal season.”
The SHOP committee said it's developing new marketing and outreach programs to employers, and it will be publicizing improved plan designs. SHOP programs will also be available to companies with up to 100 employees in 2016.
