Larger Small Groups: Challenges to Bolstering New York’s Small Group Market
See the related press release.
Second in a series, this report examines the risk of adverse selection in New York’s small group health insurance market following a change in the definition of what counts as a small business. The definition change, mandated by the Affordable Care Act, goes into effect in 2016; it could trigger a move by some employers with lower-risk employees to seek or retain more favorable insurance coverage outside the small group market. This report examines several factors to mitigate this risk.
A previous report, Larger Small Groups: Implementing the New ACA Small Employer Definition in New York, examines the possible effects of the change on businesses with 51–100 employees, and the complex options involved in implementing this new rule. It looks at the definition change in the context of broader market trends.
This project was supported by the New York Community Trust.