Get Instant Quote Button Choose a plan below:

Individual & Family Health Plans

Dental Plans

Medicare Supplement

 Group Employee Health Plans

 Life Insurance

 Travel Insurance

Enter Your Zip Code

What Will Rate Volatility Mean for Small Businesses?

California business owners checking on their benefits packages have started to hear the term "rate volatility." In short, this term means that health care costs seem likely to continue to rise. Although the Affordable Care Act (ACA) aims to slow the cost curve, several factors are driving rate increases:

1) The new law requires health plans to offer substantially richer, and costlier, benefits.
2) Guaranteed coverage options and the end of pre-existing condition clauses will increase utilization.
3) Risk adjustment and subsidization rules that can increase health plan costs even if the plan has mostly healthy members.

As small businesses move into ACA-compliant plans, they will be able to offer employees plans with more benefits. In addition, people who found insurance unobtainable or unaffordable now have easier access to coverage. The cost of these improvements will be spread throughout the healthcare system. For the next few years, it seems those increased costs will continue to drive premiums higher. Of course, small business owners still have the ability to adjust employee contributions, copayments and deductibles in order to manage rate volatility.

Save-On Health Insurance Services can help guide Los Angeles-area employers through the transition to the Affordable Care Act. Learn more by contacting us.