Online Health Law Sign-Up Is Delayed for Small Business
Published: November 27, 2013 - New York Times
WASHINGTON — The Obama administration is expected to
announce on Wednesday a one-year delay in another major element of the new
health care law, which allows small businesses to go online and get insurance
for their employees through the website of the federal marketplace.
“We plan to offer online enrollment capability by
November 2014, for coverage that takes effect in January 2015,” the Department
of Health and Human Services said in a series of questions and answers.
The administration had previously
delayed online enrollment for small businesses, scheduled to start on Oct.
1, until the end of this month.
This insurance marketplace — known as the Small
Business Health Options Program, or SHOP — was seen as one of the main benefits
of the new law.
The announcement of the delay, just before
Thanksgiving, is reminiscent of the way the White House announced, just before
the Independence Day weekend, a one-year delay in the requirement for larger
employers to offer health insurance to employees.
The new delay results, in part, from the
well-documented woes of the federal marketplace. Administration officials said
they had to focus on repairing the basic functions of the website and were not
able to address issues related to the small-business exchange.
John C. Arensmeyer, the chief executive of Small
Business Majority, an advocacy group, said, “It’s disappointing that the online
portion of the federal small-business marketplace through HealthCare.gov will be
delayed, and it’s important it get up and running as soon as possible.”
The marketplace, he said, “is still the most important
provision in the Affordable Care Act for small businesses,” as it can offer “the
most competitive combination of price and quality.”
For years, small businesses have had difficulty
getting insurance they can afford. As a result, small businesses have been less
likely than larger companies to provide coverage to employees.
In a document explaining its plans, the administration
said: “Employers can’t apply for SHOP eligibility or enroll in SHOP coverage on
HealthCare.gov at this time. However, they can go to HealthCare.gov to view plan
and pricing information to help them choose a plan and insurance company.”
The administration said that small businesses and
their employees seeking coverage in the federal exchange could still apply for
insurance and enroll through an agent or broker, as many do now.
“Agents and brokers are essential to making this
happen,” an administration official said.
However, the high-tech capability once promised by the
White House will not be available at this time.
“The agent, broker or insurer will help the employer
fill out a paper application for SHOP eligibility and send it in to the SHOP
marketplace,” the administration said. The insurer can also tell employers what
premiums they would have to pay and can enroll employees.
Some small businesses may qualify for tax credits
worth up to 50 percent of their premium costs. The tax credits will be available
only for health plans purchased through the small-business exchange.
An employer planning to use the SHOP exchange must
offer coverage to all its full-time employees — generally those working at least
30 hours a week, on average.
In April, the Obama administration delayed a
requirement that SHOP exchanges offer a variety of competing insurance plans to
employees. The administration cited “operational challenges” as a reason for
that delay.
Congress had wanted to provide small-business
employees with a choice of health plans. While some state-run exchanges will
offer such options, the federal exchange will not.