New Healthcare Opportunities for California's Small Businesses

It’s been nearly six years since the passage of the Affordable Care Act (ACA), but some provisions of the healthcare law are still being implemented. This year has brought some big changes to healthcare in California, including some good news for small businesses. With new options like an expanded small group market, employee choice and improved service, there’s never been a better time for small business owners to take advantage of Covered California for Small Business, the new name for the state’s small business insurance marketplace.

In many ways, the small business health insurance market remains the same in California for 2016. Covered California for Small Business retains the same benefits it offered last year, like competitive pricing and tax credits for eligible small businesses that purchase through the marketplace.

But at the same time, the marketplace is offering new and promising features. One of the most exciting changes for the small business marketplace is that employee choice is now available in every state, including California, which means small business workers can choose from a number of plans from different insurance carriers. This allows employees to choose which carrier they’d prefer to use, instead of the business owner choosing for them – and for most small business owners, this is a welcome change. Small Business Majority’s scientific polling found two-thirds of small employers believe allowing employees to choose among multiple carriers is an important element of the healthcare marketplaces. And for small businesses, this component is fundamental in distinguishing the new insurance marketplaces from the outside health insurance market.

Another big change to California’s market this year is that the definition of California’s small group market has expanded to include businesses with up to 100 employees. While this means some employers with 50–100 full-time or full-time equivalent employees may need to choose a new plan this year to ensure they’re compliant with the healthcare law, it also opens up opportunities for these employers to participate in Covered California for Small Business for the first time. In addition to all the usual benefits associated with Covered California for Small Business – like no longer being charged more for female workers or for employees who have pre-existing conditions – and the addition of employee choice, these businesses can benefit from better service and flexibility from Covered California for Small Business.

Adam Rochon, who owns Sequoia Solutions in Exeter, has already noticed these improvements to the program.

“This year, I feel like Covered California for Small Business has put a real focus on customer service,” said Rochon. “They’ve been responsive to any issues I’ve had, and pricing is clearer. My experience has been really positive, and I would encourage any small business owner to check out this option for purchasing coverage.”

For small business owners who are looking to secure or change their coverage plan, Covered California for Small Business is open year-round and coverage can be purchased at any time. In order to begin the enrollment process now, entrepreneurs should visit http://www.coveredca.com/forsmallbusiness/apply/ or call (844) 269-3761.

The bottom line is that while there have been changes in the small business health insurance landscape, these changes are mostly good for California small business owners. By arming themselves with information, small business owners can choose plans that work best for their businesses.