Small-business owners in California are caught in the middle of a battle between the state’s insurance commissioner and leading companies insurance such as Anthem Blue and Aetna. The companies announced significant small-business premium increases, up to 17.4 percent, for 2013.
Insurance commissioner Dave Jones believes these increases are excessive and unreasonable, disagreeing with the methodology used by insurance companies to project future medical costs. According to Jones, the insurance companies are overstating what it will cost to service their patients and are inappropriately charging fees now that aren’t required until 2014 under the Affordable Care Act.
Despite this disagreement, small-business owners have little consolation. Jones has absolutely no authority to do anything about the premium increases and benefit reductions, blaming this lack of power to a “loophole” in the healthcare reform legislation. This is likely the first of many battles around the country, as carriers report significant premium increases to individual and small-business policies. Read the full article at the Los Angeles Times.Read more Finance Watch articles.
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