FOR IMMEDIATE RELEASE: 10.11.2011
Media Contact:
Erin Musgrave
(831) 477-0453
[email protected]
Rate Review Brings Welcome Health Insurance Price Cuts for
California Small Employers
Statement by John Arensmeyer, CEO, Small Business Majority:
Kaiser Permanente’s recent announcement that it is rolling back healthcare coverage rates in
California is welcome proof that cost containment provisions in the Affordable Care Act are
working to give small businesses some much needed relief from soaring healthcare costs.
Kaiser is rolling back rates by 1.2 percent for employers whose contracts are up for renewal
between July and December 2011. Additionally, a total of $13.7 million in healthcare premium
credits will be allocated for those who saw rate increases on July 1, 2011. The credits will begin as
early as next month.
This is great news for small business owners because they feel the pressure more than most when
health insurance premiums rise. High coverage costs are a significant burden for small employers
and can hinder their ability to hire—which is crucial if we are going to rise out of the economic
doldrums.
Fortunately for California small business owners, the ACA gave the state the authority to review
insurance rates and tell companies they are too high when insurance companies’ increases are not
properly justified or actuarially sound.
The Kaiser rollbacks put money in California small business owners’ pockets where they can use it
to put the state back to work. While the new healthcare law is not perfect, there are provisions like
this one—calling for long overdue adjustments to rate review practices—that can help get small
employers back on their feet.
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About Small Business Majority
Small Business Majority is a California-based, national nonprofit, nonpartisan small business
advocacy organization founded and run by small business owners and focused on solving the
biggest problems facing small businesses today. We speak for the nearly 28 million Americans
who are self-employed or own businesses of up to 100 employees. Our organization sponsors
scientific research that guides us to understand and advocate on behalf of the interests of small
businesses across the country.