The beleaguered Affordable Care Act has seen its share of ups and downs since the roll out out a few months ago and with so many changes, many small business owners have been left to wonder how they are going to comply with the upcoming 2014 roll out. But for those wondering how they are going to adhere and adapt to some significant factors, a significant change has been announced.
A New York Times article reports that an announcement from President Obama has made it clear that small business will have increased time to adapt to the pending new year’s changes. Two years in some cases.
President Obama… announced a policy reversal that would allow insurance companies to temporarily keep people on health plans that were to be canceled under the new law because they did not meet minimum standards.
In effect, the change will give policies, at the very least, a year’s worth of time before any penalties will incur. And in some instances, as much as two years time. This means the Dec. 1 through Dec 15 deadline has been significantly extended (unless you have already renewed, of course).
What is uncertain, however, is what prices small business owners will face after the 2014 extension. Most insurers don’t have rates in place or approved that far ahead because of the pending termination of most policies beginning at the first of the year. Leading many state insurance commissioners to denounce the president’s action because they did not “intend to allow insurers to reinstate the policies.”
While many, including The National Association of Insurance Commissioners and the American Academy of Actuaries, believe the switch could threaten the viability of many insurance markets, it’s hard not to argue that this extension provides a huge sigh of relief for small business owners, and not a moment too soon.
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