State Healthcare Insurance Exchange for Employers Posted by AVCU on 1:02 PM

CUNA Mutual Group announced to credit unions that beginning in 2014, individuals and small businesses will be able to purchase private health insurance through state-based competitive marketplaces known as Affordable Health Insurance Exchanges. The Affordable Care Act provides that a state’s plan to operate an Exchange must be approved by Health and Human Services no later than January 1, 2013. However, the final rule allows for conditional approval if the state is advanced in its preparation but cannot demonstrate complete readiness by January 1, 2013. Vermont is one of 15 states that already has established a healthcare exchange. The exchange will perform a variety of functions such as:

• certify health plans as QHPs to be offered in the Exchange
• provide a website to facilitate consumer comparison of approved health plans
• provide a toll-free hotline for consumer support, providing grant funding, conducting research and education
• set eligibility requirements for consumer enrollment in approved plans
• facilitate consumer enrollment in approved plans

Vermont's Exchange will establish insurance options for small businesses. Employers will be able to choose the level of coverage they will offer and offer employees choices of all the qualified plans within that level of coverage, or a single plan for all employees. States can set the size of the small group market at either 1 to 50 or 1 to 100 employees until 2016. In 2016, employers with between 1 and 100 employees will be able to participate as well. In 2017, states will have the option to let businesses with more than 100 employees buy large group coverage through the arrangement. 

Beginning in 2014, small employers purchasing through state plans may be eligible for a tax credit of up to 50 percent of their premium payments if they have 25 or fewer employees, pay employees an average annual wage of less than $50,000, offer all full-time employees coverage, and pay at least 50 percent of the premium.

Read a more detailed explanation by insurance experts at CUNA Mutual Group and see how Vermont compares to other states on Health Insurance Exchanges here.