New Health Care Legislation Benefits Small Business Owners in Mississippi

To purchase a group health insurance policy for their employees, small businesses in Mississippi will continue to be defined as a business with 50 employees or less thanks to the passage of the Protecting Affordable Coverage for Employees or PACE Act.

The PACE act, a bipartisan health care bill passed by unanimous consent in both houses of Congress and signed by President Obama, gives states the authority to define “small group” in a manner consistent with their state’s needs. It also rolls back a provision in the Affordable Care Act that would have expanded the definition of small employers from groups of up to 50 employees to include groups of up to 100 employees. 

Such an expansion would have prevented mid-size employers from keeping the plans they currently have and instead forced them to select a new plan offered in the small group market, putting severe financial stress on their business. Mid-size employers would have been subjected to the modified community rating rules, meaning that rating would be determined by age, geography, tobacco use and family size. These same employers would have no longer been able to receive discounts based on their actual claims experience and would instead have had to comply with the actuarial value, cost-sharing and essential health benefit requirements. An analysis by the Oliver Wyman group found that under the expansion, two-thirds of groups in the 51-100 market would have received premium increases of an average of 18 percent in 2016.

“This is a huge victory for small businesses in Mississippi, who will ultimately save thousands of dollars in insurance premiums,” Commissioner of Insurance Mike Chaney said.

“I want to publicly thank the members of the Mississippi Congressional delegation, in particular Senators Cochran and Wicker, co-sponsors of the Senate bill, who were outspoken supporters of this legislation.”

The Congressional Budget Office has estimated that the PACE Act will reduce the deficit by $400 million over ten years because it would reduce premiums in the mid-size employer market, thus increasing taxable income of employees.

Chaney added again, that while he may not agree with everything in the Affordable Care Act, it remains the law of the land and that he and the Mississippi Insurance Department will continue to work within the framework of the law to regulate health insurance for the benefit of all Mississippians.

Commissioner of Insurance Mike Chaney –

“Today the United States Supreme Court issued a ruling in the King v. Burwell case, in favor of the defendant, Department of Health and

Human Services Secretary Sylvia Burwell, which means federal tax credit subsidies can legally continue to be applied in states where the

Individual Health Insurance Marketplace, commonly called the Exchange, is operated by the federal government.  Since Mississippi’s

Marketplace is operated by the federal government, this ruling means that over 100,000 Mississippians who purchased individual health

insurance through the Marketplace will continue to receive health insurance coverage.

“Although I may not agree with everything in the Affordable Care Act, it remains the law of the land and I will continue to work within the

framework of the law to regulate health insurance for the benefit of all Mississippians.”

On August 28, 2013, the United States Department of Health and Human Services issued regulations that will now allow states to apply to operate a state-based free market Small Business Health Options Program (SHOP) marketplace.

“Mississippi is in a position to begin operation of a free market SHOP marketplace in the first quarter of 2014,” Commissioner of Insurance Mike Chaney said.

Chaney stressed that a SHOP marketplace is not an ObamaCare state exchange for subsidized beneficiaries and does not expand Medicaid. He also noted that the Mississippi State Senate passed a bill to create such a marketplace before ObamaCare was proposed.

Mississippi has applied to operate a SHOP marketplace. The Mississippi Insurance Department recognizes the importance of providing small business owners access to alternative health care options for their employees and is committed to facilitating the establishment of a state-based Small Business Health Options Program (SHOP)-only Marketplace. 

“The state has had a developed plan ready since early 2013 and has been waiting for Federal approval of our request to operate the free market approach of SHOP exchanges.  I am pleased that Federal authorization was granted by CCIIO August 28th, 2013 for all states to apply to operate a state based free market SHOP, “Chaney said.

(*Note-CCIIO-The Center for Consumer Information and Insurance Oversight within HHS)

A SHOP Marketplace is designed to assist employers and facilitate enrollment of employees into qualified health plans (QHPs).  Small employers, primarily those with fewer than fifty (50) eligible employees, will be able to apply and enroll online in an array of QHPs.  The SHOP Marketplace will offer a flexible and easy-to-understand plan selection process for both employers and employees, and will include services for premium billing and payment processing, among others.

"It is with great gratitude and thanks that MID and I make this announcement that affects the citizens of our great state."  - Commissioner Mike Chaney

Through the efforts of many individuals, we are pleased to announce that Humana has stepped forward to cover the 36 counties in Mississippi that did not have health plans available under the Federally facilitated Health Insurance Marketplace. As many people know, we have had real concerns about being able to have full coverage for the entire state. Humana’s decision to extend their coverage in Mississippi demonstrates their good corporate citizenship. We appreciate both Humana and Magnolia Health Plan’s work to cover all counties in the state on behalf of our citizens.
 
Humana has released the following statement:
 
“Humana filed to amend our qualified health plans offered on the individual exchange in Mississippi to include an additional 36 counties (for a total of 40 counties). The additional counties represent those that we recently learned would otherwise have had no individual exchange offerings – thus, no subsidy-eligible coverage options for qualifying residents. This builds on Humana’s current presence in the state of Mississippi, where Humana already covers well over 200,000 Mississippians, including individuals, employer groups, military retirees and their families, as well as Medicare beneficiaries. By working together with local health care providers, we believe we can enhance quality of care and improve health outcomes in the state. Humana’s goal is to help people achieve lifelong well-being.”