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CT employers get first peek at Obamacare insurance costs

Open enrollment season is less than two months away and Connecticut employers are getting their first look at the cost of insurance under the Affordable Care Act.

The Connecticut Insurance Department has approved health plans by three insurance companies that will offer coverage in the state’s Small Business Health Options Program, or SHOP exchange.

The SHOP exchange, which is being operated by Access Health CT, is a key part of the federal health care reform law and will essentially serve as an online marketplace where insurance can be purchased. The federal government will also offer subsidies through the exchange to certain qualifying small businesses to make health care coverage more affordable.

Anthem Blue Cross and Blue Shield, UnitedHealthcare, and HealthyCT had their base plan rates recently approved insurance regulators. ConnectiCare Benefits Inc. also planned to offer coverage but has since dropped out of the small employer exchange.

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The insurers will offer several levels of coverage ranging from bronze to gold. Bronze plans will offer the fewest benefits, and cost employers less, while gold plans will offer richer benefits and carry a higher price tag.

The base rates for bronze plans range from $271.91 to $298.05. The base rates for gold plans range from $390.05 to $435.72.

Base rates do not actually represent final plan costs, however, because they don’t take into account a person’s age or home location, or the federal subsidies a business may qualify for to offset a portion of the premium.

Important facts employers should know about the SHOP exchange:

• You control the coverage you offer and how much you pay toward employee premiums. There are numerous plans to choose from and you can compare health plans online on an apples-to-apples basis.

• You may qualify for a small business health care tax credit worth up to 50 percent of your premium costs. You can still deduct from your taxes the rest of your premium costs not covered by the tax credit. Beginning in 2014 this is available only for plans purchased through the SHOP exchange.

• Starting Oct. 1, plans will be available for review and enrollment for coverage starting as soon as Jan. 1, 2014. After January, rolling monthly enrollments will be available for employers. Once a group is enrolled, its rate is guaranteed for 12 months.

• Access Health CT will have multiple health plan options, including bronze, silver and gold plans. There will also be multiple carriers including Anthem Blue Cross & Blue Shield, HealthyCT and UnitedHealthcare. It will be important to check if your preferred doctors participate in your chosen plan.

• Small businesses will have consolidated billing options and employers can collect the employee share of premiums through payroll deduction.

• Premium contributions can be made with pre-tax dollars. No membership fee will be charged to participate in the SHOP. You can continue to use your certified broker.

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