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Health Exchange Promises 12 Percent Drop In Small Business Insurance Rates

California's health insurance exchange released its rates for small businesses this week. The exchange, Covered California, said the cost of buying insurance for employees could drop 12 percent in San Diego.

Under the Affordable Care Act, companies with fewer than 50 employees do not have to offer health coverage, but the law incentivizes buy-in from small businesses by granting those with 25 or fewer workers access to the state-run insurance exchanges.

Covered California sets the price for a 40-year-old employee in a mid-range plan at $290 a month, or 12 percent less than the 2013 average, $324. The exchange plans also come with special tax credits for businesses – up to 50 percent off what they pay in premiums.

Businesses with 50 to 100 employees can participate in the exchange beginning in October 2015.

Follow all of our coverage on the Affordable Care Act.

Exchange rates compared to 2013 small group market

Comments

Avatar for user 'Mmikey'

Mmikey | August 3, 2013 at 8:25 a.m. ― 1 year, 3 months ago

Is this 12% calculated after the rates go up 20%

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Avatar for user 'Megan Burks'

Megan Burks, KPBS Staff | August 7, 2013 at 3:28 p.m. ― 1 year, 3 months ago

It's the difference between the average premium for a law-to-mid-range plan in California now and the premium for a similar plan that will be offered in the state-run insurance exchange.

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