State Updates

State Begins Program Reducing Premiums for Small Business Health Insurance Plans

 

On April 20, 2022, Superintendent Toal released Bulletin 2022-006 to all health insurance issuers selling healthcare plans in the state’s small group market. The bulletin provides program parameters, requirements for issuers, and the Superintendent’s responsibilities for forthcoming emergency rules that establish the Small Business Health Insurance Premium Relief Initiative.

Effective January 1, 2022, the state legislature created a healthcare affordability fund from which the state will reimburse issuers who issue plans for small businesses in the state for either reducing the premiums charged for those plans or applying a credit for coverage invoices to small business purchasers. The bulletin states that effective July 1, 2022, to December 31, 2022, the premium reduction is 10%.

The bulletin also describes certain reporting requirements that issuers must follow and imposes an obligation on these issuers to notify their small business customers of the premium discount or credit within 60 days of July 1, 2022.

Small employers with plans issued in the state should be aware of this development.

Bulletin 2022-006 »

PPI Benefit Solutions does not provide legal or tax advice. Compliance, regulatory and related content is for general informational purposes and is not guaranteed to be accurate or complete. You should consult an attorney or tax professional regarding the application or potential implications of laws, regulations or policies to your specific circumstances.

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