Employees at small companies could see a significant increase in their options for health insurance coverage when the new exchanges open under the Patient Protection and Affordable Care Act, according to a Kaiser Health News report.
Currently, small business workers rarely have much choice when it comes to health insurance. Their employers don't have the buying power of larger companies, and subsequently they often end up offering limited plans with high administrative costs, according to the report.
The PPACA requires each state to form a Small Business Health Options Program, which lets small businesses designate what they want to contribute to coverage and let employees choose between various health plans offered through the exchange.
HHS has partially delayed the SHOP exchanges in the 33 states where the federal government will facilitate exchanges in 2014 on the grounds that the program will be too complicated for insurers to enact by next year. A PPACA requirement that health insurance exchanges for small groups allow employers to choose multiple plans to offer employees won't apply until 2015. HHS will run SHOP exchanges in 2014 but but will not be able to offer multiple plan options for enrollees.
However, the other states and the District of Columbia are working toward marketplaces where small employers will offer their workers more than one coverage option, according to the report.
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