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Employers must be ready for exchanges

As the Supreme Court ruled 5-4 to uphold the health care reform law, the various mandates are continuing to move forward, and employers need to be ready for the effects. Specifically, the health care exchange system will be a major change that employers must be ready to deal with, says...

By Amanda McGrory-Dixon | Updated on June 28, 2012

As the Supreme Court ruled 5-4 to uphold the health care reform law, the various mandates are continuing to move forward, and employers need to be ready for the effects. Specifically, the health care exchange system will be a major change that employers must be ready to deal with, says Lee Doble, CLU, CEBS, managing director of Frank Crystal & Company.

“Smaller employers, which are those with fewer than 50 employees in most states and up to a 100 in other states, will see reduced flexibility in terms of plan offerings and in choices of carriers,” Doble says. “This is partially because of the SBC requirement, partially because of the health care exchanges being established and partially because the medical-loss ratio requirement that has caused many insurance carriers that focused on the smaller-employer market to withdraw out of the market altogether.”

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