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The Health of the Small-Group Insurance Market.

Mark A Hall1, Michael J McCue2

  • 1Wake Forest University School of Law.

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The Affordable Care Act (ACA) did not reduce small-group insurance costs but increased access and comprehensiveness. Despite enrollment declines, more small businesses now have coverage, and recent regulatory changes require monitoring.

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Area of Science:

  • Health policy
  • Health insurance markets
  • Affordable Care Act

Background:

  • Limited discussion exists on the small-group employer insurance market post-Affordable Care Act (ACA) implementation.
  • Understanding this market is crucial before assessing recent Trump administration regulatory changes.

Purpose of the Study:

  • To evaluate the ACA's impact on prices, enrollment, and competition within the small-group insurance market.
  • To assess market conditions prior to recent regulatory shifts.

Main Methods:

  • Analysis of financial data submitted by small-group insurers to the federal government.
  • Review of pertinent published scientific literature.

Main Results:

  • Small-group market enrollment has decreased, continuing a pre-ACA trend.
  • More small business owners and employees now have coverage due to subsidized individual marketplace plans.
  • Price increases in the small-group market mirror those in the large-group market.

Conclusions:

  • The ACA enhanced accessibility and comprehensiveness of small-group insurance without market harm.
  • The ACA did not lower small-group insurance costs.
  • Continued monitoring of the small-group market is essential to prevent negative impacts from recent regulatory changes.