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The Affordable Care Act

Since the Affordable Care Act (ACA) passed in 2010, many business people and consumers have felt that their insurance costs were going to be going up. I’m sure they have never regretted being so right.

The deadline looms for Ohio to submit insurance plan options to the federal government for the healthcare exchanges. As the deadline approaches, there have been more and more articles both locally and nationally that talk about projected increases in healthcare premiums.

ACA Impact in Ohio

In Ohio, Lt. Governor and Director of Insurance Mary Taylor has talked about small businesses seeing an increase between 50-85%. Some companies may even see an increase as large as 150%, she says. Granted, under the ACA, companies with older or sicker populations may see their premiums shrink by as much as 40%. However, those with populations which were once more desirable will see a huge increase. This is due to the law’s provision that rates must be based on a large community (community rating) with premiums being more equally spread over that community.

Many news stories are being written about the "unintended consequences" of this law. Some of the ACA’s biggest supporters, like unions and members of President Obama’s party, are beginning to voice serious concerns about the law.

Understanding the ACA

Of course, the ACA is now the law of the land thanks to the Supreme Court’s ruling in June of 2012. That means that employers will have to make pretty tough decisions in the next few months as more of the law’s features begin taking effect. Many employers have been taking advantage of what has become a cottage industry of late, the Obamacare seminars. However, those have left many employers even more confused.

Large companies are also confused, but have more resources to guide them through these waters. Small business owners must learn to navigate them alone, or do what others have done and begin conversations with a Professional Employer Organization (PEO) like GMS. A PEO can provide small businesses the same resources and infrastructure that a large company has without all of the associated costs.

PEOs Can Help

For further information on how a PEO can help you deal with the ACA, contact Tim Austin at or 330-659-0101.

"Stethoscope and Piggy Bank," ©401(K) 2012, used under Creative Commons Attribution-ShareAlike 2.0 Generic license.

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