Healthcare Issues (An NJBIA Issue Network)

Small employers will have their ability to buy multiple health insurance plans for employees curtailed in the next few months. Currently, many small employers choose to offer their employees more than one health insurance plan. This might be a lower cost HMO and a more expensive point of service (POS) plan with an out-of-network option.

The rule change made by the New Jersey Small Employer Health Coverage Board (SEH) would restrict small employers’ purchasing options to as few as just one health insurance plan, unless a health insurance carrier opts to allow the small employer more options.Specifically, the board voted to require health insurance carriers to issue only one health insurance plan, of the many they offer, to a small employer. It will be the health insurance carrier’s option to choose to sell more than one plan. Health insurance carriers will still offer a variety of plans, but the new rule will limit how many of these plans an employer could choose to offer its employees.

I am interested in your comments on this new policy. Does your company currently offer more than one plan to employees? If yes, are the plans issued by the same carrier or different carriers?

Please share your comments with me via e-mail at cstearns@njbia.org or by calling me at the office (609) 393-7707 x-260. I look forward to hearing from you.