Small businesses in markets with many insurance brokers competing for business are more likely to offer medical coverage,
The researchers analyzed health coverage data from 2008 and found small firms were about 20 percent more likely to offer coverage in counties with the most brokers — professionals who help consumers navigate insurance markets — compared to areas with the fewest brokers, according to the report. Additionally, the average premium for an individual employee was $4,495, 13 percent less than the $5,173 employees paid on average in the counties with few brokers.
As the new health insurance exchanges open under the Patient Protection and Affordable Care Act, brokers will experience competition from "navigators," groups that will perform informational services for Americans who need assistance in shopping for and enrolling in plans this fall. Last week, HHS awarded $67 million in grants awarded to 105 state and federal insurance marketplace navigator organizations.
Insurance agents and brokers have criticized the navigator program as "reckless" and "ill-advised."
More Articles on Health Insurance Coverage:
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HHS Awards $67M in Marketplace Navigator Grants