As business owners are likely well aware, the second open enrollment period is just around the corner. On Nov. 15, individuals who are uninsured – or people who want to change plans – can use this period to update their plans or take advantage of new opportunities. Based on a new study, due the increasing popularity of the health marketplaces, there's a good chance more companies will begin to utilize these exchanges as a means through which employee benefits are made available.
Overall, about 2.5 million people get health coverage through private exchanges, according to a recent study performed by the Kaiser Family Foundation. Additionally, among large employers – companies with more than 100 employees on staff – 2 percent have adopted a private exchange approach and 13 percent are considering making the switch.
HHS: 25 percent more issuers in 2015
While the next sign-up period begins in mid-November, there will be 25 percent more providers participating in the exchanges than there were when the enrollment period ended last year, according to new information from the U.S. Department of Health and Human Services. More specifically, nearly 80 providers are in the marketplace that weren't there in 2013.
"When consumers have more choices, we all benefit," said Sylvia Burwell, secretary for HHS. In terms of affordability, access, and quality, today's news is very encouraging. It's a real sign that the Affordable Care Act is working."
Greater choice may explain why more businesses are considering the federal health exchanges. HHS found that among those states that are participating in the federal program, there will be 57 more issuers, which is a net 30 percent jump in providers from 12 months ago. Meanwhile, of the eight states with state-based marketplaces, there's six more, or about 10 percent more than last year.
Though many business owners have long offered employee benefits, 2015 is a notable year for because it's at this time that entrepreneurs with 100 or more workers will be required to make health plans available to their staff, provided they work full-time. If they don't, the government has said it will fine business owners for every employee that's left uncovered, which will likely be levied during tax filing season, experts say.
Employers predict adding workers in next two years
Companies not yet over the 100 employee threshold may be so before the year is out. In a separate poll from the Transamerica Center for Health Studies, roughly one-third of employers said they expected their firm to increase the number of people it's employing over the next two years. When a similar survey was done last year, just 20 percent indicated as such.
At 54 percent, most people who have health insurance get it through their employer, according to 2013 data from the U.S. Census Bureau. Slightly over 34 percent of the population have government-provided coverage, not including Medicare. Roughly 15 percent have Medicare, which is confined to people once they turn 65 years of age.
