Running a small businesses can be tough. Between staffing, compliance, policy creation, managing payroll, financial reports, and the 2,000 other things you have on your plate, sometimes the time you have “left over” (if there’s even such a thing) is marginal, at best. Consider the ins and outs of your responsibilities as an employer which include ever-changing regulations as they pertain to employee benefits, and well, you have yourself a recipe for stressed-out-losing-sleep-can’t-concentrate-on the-big-picture disaster. Welcome to running your own business!
A concern on nearly every business owner’s mind as their business and employee base continue to grow is the rising cost of healthcare and the compliance concerns that come standard with those offerings. As a result of the Affordable Care Act (ACA), small businesses were given the opportunity to purchase health insurance through the Exchange, Small Business Health Options Program (SHOP), or conventional plans. Until recently, small businesses had been subject to a community rating methodology when it came to determining their healthcare rates.
As a business owner, you may be familiar with the terms community rating and experience rating as it relates to your employee benefits healthcare rates. If you’re not, let’s take a minute to level set.
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