ACA Still A Struggle For Tennessee Small Businesses

ACA Still A Struggle For Tennessee Small BusinessesMany Tennessee small business owners are among the millions of businesses nationwide that have not yet had to adapt to the complex Affordable Care Act (ACA). While the federal government has been encouraging small business owners to buy into the new healthcare system ever since the ACA went into effect, many business owners instead took advantage of provisions that allowed them to keep offering employees existing healthcare insurance policies. There are currently two types primary ways that Tennessee business owners are able to opt-out of the ACA standards, “grandfathered” healthcare plans and “grandmothered” healthcare insurance programs.

The Affordable Care Act allows employers who like their current healthcare program to keep it, as long as the plan was in existence before reform was enacted on March 23, 2010. These plans are referred to as “grandfathered” plans and are exempt for the coverage guidelines and stipulations imposed by the ACA. Additionally, small businesses were given a temporary extension to keep their existing healthcare policies as long as the policy was established prior to 2014. Unlike “grandfathered” plans, these policies known as “grandmothered” plans, are required to be adapted to meet the ACA requirement in the future. For small businesses currently offering “grandmothered” health care plans, time is running out. Many small operations will soon have to adopt new ACA compliant Health Insurance programs.

Tennessee health insurance rates vary from region to region, and the Affordable Care Act mandates more healthcare services and coverage minimums than many older established insurance policies. As a result, one of the largest draws to keeping “grandfathered” and”grandmothered” plans is that small businesses feet they were able to save themselves and their employees money while still managing to offer health benefits. While many small business owners are reportedly very interested in continuing to offer health insurance to their workers, the changing prices could be a contributing factor. Because the law prohibits insurers from charging higher premiums based on the health status and places limit on adjustments for age, some Tennessee employers could see dramatically reduced rates than they are currently paying. While others, with younger and healthier workforces could see significant increases for healthcare policies when updating to mandated coverage inclusions.

Understanding and planning for the ACA changes continues to be a challenge for many Tennessee small businesses, which is why Barnes Insurance Agency aspires to be a resource about the Affordable Care Act and Tennessee Healthcare Reform for residents and businesses alike. Our specialists are here to help ensure that Tennessee has access to quality personal and business insurance solutions that will protect themselves, their families, and all their assets against a number of financial loss exposures. To learn more about our East Tennessee insurance agency and our offerings, contact us today at (866) 733-5424.



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