8 Affordable Care Act Predictions For 2014

When it comes to making expert predictions about the wide range effects of the Affordable Care Act in 2014, Pontrelli, Timour & Associates have the expertise needed to be right on target. As an employee benefits and insurance agency working with small to mid-sized businesses for over a decade in Pasadena, the principals at the agency have the knowledge to provide quality prognostications. The following 8 predictions are based on a balance of factual data combined with the insight of long-term experience.

8 Affordable Care Act Predictions For 2014

  1. Since the majority of carriers shifted the renewal dates of their clients to December 1, most business owners don’t have to take any direct action until then. As a result, the true brunt of the Affordable Care Act’s business fallout will hit hardest in the 4th quarter.
  2.  The biggest initial problems will be with individual solo policies as rates go up the benefits are reduced. The result is going to be a lot of angry people shaking their fists at healthcare reform and wondering why they ever wanted it in the first place.
  3.  Many uninformed business owners without an actual understanding of the laws will try to avoid the 50 employee mark of the Employer Mandate by shifting full-time employees to part-time. Such a shift is illegal, doesn’t work as an avoidance strategy because part-time employees are included in the Employer Mandate equation, and will result in many stories about the IRS and other government agencies cracking down on small business owners across the country for this violation.
  4. On account of the customercentric approach of PT Benefits, almost 100% of our clients early renewed and moved to December. In contrast, how many small to mid-sized companies with the huge corporate providers fell through the cracks of poor customer service. The immediate result when they have to renew early will be the tough initial options on account of a lack of concrete rate information. Anger over this outcome will result in a bevy of local negative ACA news stories in the first to second quarter of the year.
  5. affordable care act predictions

    Affordable Care Act Predictions

    Any employee or group that had a high deductible catastrophic PPO plan will most likely be paying double come their renewal in 2014. An example is a small restaurant owned by an older lady with such a plan. Her rate will double in terms of the costs because of the minimal coverage and deductible thresholds. In addition, the new extensive requirements for pediatric dental and vision, maternity, expanded non-institutional mental health benefits, contraceptives, breast pumps, lactate consultants, and the list goes on and on. Each state threw in their benefit requirements on top of the federal requirements, resulting in plans that simply cover so much more than is truly needed. Both the business owners and the employee are being hurt because the rates are skyrocketing. As a result, this woman’s rate at her restaurant will more than double because of these new requirements, perhaps even causing her to go out of business after years of serving food to her community.

  6.  The biggest losers in the financial chaos that is being wrought by the Affordable Care Act will be lower middle class to middle class Americans, the vast majority of the country stuck in the center. Healthcare reform really only affects high middle class to wealthy Americans as business owners, and most of them will be able to adapt. The bottom rung of the ladder – the homeless and the destitute – theoretically will be helped. But the middle will be hurt and hurt bad in 2014. And this middle is the heart of America.
  7.  Technology in the industry of benefits administration and insurance brokers traditionally has been very poor. In 2014, this is going to start to shift as a result of ACA and the need for more interactive websites to explain and evaluate the changes for existing clients and potential new clients. Mobile technology will be on the rise as well.
  8. Overall, the Great Panic Debate of 2013 will shift into more realistic discussions about how to be sustainable in 2014. How are insurance brokers going to make the changes work for their clients beyond the initial stage of denial. This is why the insurance brokerage team at Pontrelli, Timour & Associates is focused on finding the best possible ways to optimize the Affordable Care Act options and possibilities for all of our clients.

Help With The Affordable Care Act

If these Affordable Care Act predictions scare you, you are not alone. The perspective of the government on the Affordable Care Act is not the perspective of insurance professionals. If you are worried about how the Affordable Care Act will affect your business and your employees, please contact PT Benefits by calling 626-795-4138 for insurance solutions.

Raphy Timour

About 

Co-Founder at Pontrelli, Timour & Associates, Inc.

A California native of Pasadena, Raphy Timour began his career at Automatic Data Processing as an outside sales representative, achieving President Club status each and every year at ADP. Wanting to provide clients with a more customercentric approach, Raphy Timour started Pontrelli, Timour & Associates, Inc. in 2003 with his childhood friend Chris Pontrelli. Raphy Timour has a Health & Insurance License from the California Department of Insurance.

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