{"id":165,"date":"2015-07-30T16:39:45","date_gmt":"2015-07-30T16:39:45","guid":{"rendered":"http:\/\/www.4yew.org\/research\/?page_id=165"},"modified":"2023-11-11T17:34:23","modified_gmt":"2023-11-11T17:34:23","slug":"sizing-the-potential","status":"publish","type":"page","link":"https:\/\/www.4yew.org\/research\/sizing-the-potential\/","title":{"rendered":"Sizing the Potential"},"content":{"rendered":"<h2><strong>Sizing the Potential for Healthy Groups<\/strong><\/h2>\n<p>With the merging of the 51-100 employee employers into the small group market (groups with up to 50 employees), the small group market <a href=\"http:\/\/www.4yew.org\/research\/impact-of-aca\/\">potentially increases by over 40%<\/a>.  Yet, such market growth only occurs if all employers with more than 50 employees choose fully insured products over self-insurance.<\/p>\n<p>Our Founder contributed to the American Academy of Actuaries recent issue brief, <a href=\"http:\/\/actuary.org\/files\/Small_group_def_ib_030215.pdf\" target=\"_blank\" rel=\"noopener\"><em>Potential Implications of the Small Group Definition Expanding to Employers with 51-100 Employees<\/em><\/a>, which states: <strong><em>&#8220;Groups sized 51-100 that will be subject to the small group market rules may have increased incentives to self-insure&#8221;<\/em><\/strong> and <strong><em>&#8220;groups &#8230; with a younger and healthier population, may have the greatest incentives to self-insure&#8221;<\/em><\/strong> increasing the risk that <strong><em>&#8220;the small group, single risk pool plans would experience adverse selection&#8221;<\/em><\/strong> with <strong><em>[p]remiums for these plans [to] increase&#8221;<\/em><\/strong>.<\/p>\n<p>The Urban Institute fears such adverse selection and has sought to <a href=\"http:\/\/www.urban.org\/urban-wire\/discouraging-self-insurance-under-aca-would-protect-coverage-all-types-small-businesses\" target=\"_blank\" rel=\"noopener\">limit the expansion of self-insurance<\/a>.  It states that applying significant limitations to the growing stop loss market would allow <strong><em>&#8220;the fully insured small-group insurance market [to] be about 1.5 times as large, and premiums in that market [to] be 20-25 percent lower&#8221;<\/em><\/strong>.<\/p>\n<p>The Institute&#8217;s analysis suggests a significant financial opportunity for the employer willing to self-fund its health plan.  Based upon the Institute&#8217;s estimates employers choosing to self-insure were expected to <strong><em>see a 20-30% price benefit<\/em><\/strong> versus the small group fully insured product.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sizing the Potential for Healthy Groups With the merging of the 51-100 employee employers into the small group market (groups with up to 50 employees), the small group market potentially increases by over 40%.&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"open","template":"","meta":{"footnotes":""},"class_list":["post-165","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/www.4yew.org\/research\/wp-json\/wp\/v2\/pages\/165"}],"collection":[{"href":"https:\/\/www.4yew.org\/research\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.4yew.org\/research\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.4yew.org\/research\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.4yew.org\/research\/wp-json\/wp\/v2\/comments?post=165"}],"version-history":[{"count":13,"href":"https:\/\/www.4yew.org\/research\/wp-json\/wp\/v2\/pages\/165\/revisions"}],"predecessor-version":[{"id":1114,"href":"https:\/\/www.4yew.org\/research\/wp-json\/wp\/v2\/pages\/165\/revisions\/1114"}],"wp:attachment":[{"href":"https:\/\/www.4yew.org\/research\/wp-json\/wp\/v2\/media?parent=165"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}