HCW Benefits Blog

Contributor:
Todd Yates, Managing Partner
Hill, Chesson & Woody

Two questions arose regarding the year 2014 modified community underwriting requirement changes in the under 100 segment for fully insured cases:

1)  Will changes in healthcare reform underwriting mean an increase or decrease in employers' healthcare plan costs?

This reform change will lower some employers' costs while raising others.  The net effect will be to make the pricing for all fully insured groups with under 100 employees, closer to a level playing field, regardless of the health of the employees.

2)  If I prefer not to be “socialized” in the rating of my health plan, what options do I have?

If you wish to have your members' claims experience play a greater role in the cost of your health plan, then you will need to look at an alternate method of financing your healthcare claims - such as a method that has a more direct correlation between your claims and your premium, not combined with other organization risks.  The methods of financing vary and should be aligned with the organization's risk tolerance level.