A simple way to find 4% savings in 2017 group health renewals

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By:          Zack Pace, SVP, Benefits Consulting

Do you remember last December when the Cadillac Tax was delayed until 2020? Do you remember reading that the same law also placed a one-year moratorium on the annual fee the Affordable Care Act (ACA) imposes on most health insurers?  Because this moratorium was for 2017, I filed this latter news in the too good to be true long-term bin, announced the Cadillac Tax delay, and turned my focus to which marinade to use for our chargrilled 2015 Christmas turkey.

Meanwhile, seven months later, this moratorium is quietly set to go live this January. Short of an act of Congress, it will. What this means, on paper, is that most employers sponsoring fully insured medical, dental and vision plans will see January 2017 renewals 3% to 4% lower than what they would have been, otherwise.

In my latest essay for Employee Benefit News, Reduce health plan premiums by leveraging the 2017 ACA health insurer fee moratorium, I explore:

  • The impact of this fee moratorium
  • The ways employers can leverage the moratorium to their financial advantage
  • What might happen when the moratorium ends in 2018

The short version is that as fully insured medical, dental, and vision renewals cross my desk, we’ll be ensuring that this 4% premium reduction becomes a windfall for our clients, not extra margin for the insurers.

Here’s the full article – Reduce health plan premiums by leveraging the 2017 ACA health insurer fee moratorium. You may need to register with Employee Benefit News to view it.

You can reach me on zpace@cbiz.com or via Twitter. My collection of LinkedIn essays is located here, and my Employee Benefit News articles are available here.

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Zack Pace

Zack Pace, SVP, Benefits Consulting at CBIZ Inc., and his team design, implement, and manage benefits packages that are highly effective at empowering clients to attract and retain the top talent needed in order to outperform competitors, while ensuring that the cost of the overall benefits program and its components are cost-effective.
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