MBPA Supports Governor Snyder in Allowing Small Businesses and Individuals to Keep Their Existing Health Plans

WARREN, Mich., Nov. 22, 2013 /PRNewswire-USNewswire/ -- Today, the Governor announced that he will allow the President's ACA fix on existing health plans in the State of Michigan.  The Michigan Business and Professional Association (MBPA) applauds the Governor in giving carriers this option as this decision is being done state by state.  This announcement allows carriers to decide if they are able to do this as the ACA plans are being implemented. 

"Our hope is that small business can keep their coverage. The Governor has done the right thing by allowing the option for small business and individuals to keep their coverage," said Jennifer Kluge, CEO of the MBPA. "The question becomes, is it feasible for the carriers to turn the ship around without negatively impacting rates. If not, it might be best for some small businesses/individuals to keep the new ACA compliant plans."

As of January 1, 2014 the ACA requires carriers to implement plans with minimal essential benefits and new underwriting requirements.  Many carriers have had this implemented as of October 1 for January 1 effective dates after many months of preparation.

The President announced last Thursday, November 14, that he would implement a national fix, but was unclear on how it would be done.  Each state has the option to implement the delay in implementing ACA compliant plans, thus allowing small business and individuals to keep their existing plans without being cancelled.  Numerous states are not allowing this. 

Many small businesses are already keeping their existing plans through 2014 when they changed their renewal dates to November or December, delaying ACA plans for 2014. Currently, there are several plans in the marketplace that delay ACA provisions for individuals as well.  The MBPA encouraged members to change their renewal dates in 2013 to delay any negative impact of the ACA.   

"We do have some concerns about unintended consequences like the additional negative impact on rates and potential confusion in the market.  At least the Governor has made it an option for carriers in Michigan, which is fantastic compared to other States that are not as flexible," said Jennifer Kluge.

The Michigan Business and Professional Association boasts a statewide sphere of influence that no other organization of its kind can claim, leveraging a depth of programs and community initiatives that positively impact more than 150,000 businesses. Learn more at www.michbusiness.org.

SOURCE Michigan Business & Professional Association