Employers Could Make a Costly Mistake With Early Health Insurance
Colorado HealthOP Offers Free Health Insurance Business Analysis to Help Employers
Determine Best Course of Action Related to Early Renewal
Denver, CO, July 15, 2013 — Many Colorado employers are considering renewing their health
insurance early. For business owners, this deliberation is being driven by confusion about changes
in healthcare, and for larger businesses, specifically by their struggles to understand how the
Affordable Care Act employer mandate delay announced this month will affect health insurance
decisions for them and their workforce. According to Colorado HealthOP, Colorado’s first statewide
nonprofit health insurance cooperative (CO-OP), the decision to renew early could be a costly
“Business owners are feeling a lot of pressure to quickly lock in their 2014 health insurance rates.
They are confused about the insurance landscape, and many insurance carriers are encouraging or
providing incentives for early renewal,” said Julia Hutchins, chief executive officer of Colorado
HealthOP. “Unfortunately, those that do not consider their options in 2014 prior to renewing may
be missing out on opportunities to make smarter choices for their employees’ health and their
For many employers, waiting and exploring new options available in 2014 may be a better
alternative. Colorado HealthOP shares these four reasons why waiting to renew health insurance
may be the best choice for many business owners:
1. Small employers will have more health insurance options. The number of carriers
actively selling products in the small group market in 2014 has increased. New companies like
Colorado HealthOP are offering innovative products that may be a better fit for employers
committed to the health and wellness of their workforce.
2. Employees of small businesses get more choices. Small businesses that purchase
insurance through Connect for Health Colorado’s small group exchange have the opportunity to
offer their employees a choice of multiple health plans from multiple carriers, rather than
contracting with one overarching health plan. For employers that have historically not been able to
give their employees a lot of choice, this is a major benefit of waiting to renew.
3. Businesses of all sizes have the option of considering whether the individual market
may actually be best for employees. For some employers, directing employees to Connect for
Health Colorado to purchase a health plan may actually allow their employees to access richer
benefits at a lower cost. This is especially true for businesses with a large percentage of
employees who qualify for income-based subsidies.
4. Employers and individuals may be able to access health plan prices that are
comparable to current renewal prices. When preliminary insurance rates were released in
early June, small businesses and individuals alike were pleasantly surprised to see reasonable
prices comparable to 2013. When Connect for Health Colorado launches in October, employers and
individuals may find that there is financial benefit in waiting to renew their health insurance in
"As a responsible manager of their employees’ benefit plan, business owners need to research
their options and do their financial due diligence, particularly around early renewal,” said Hutchins.
“This is particularly important to ensure that early renewal does not put the business at risk for
future financial or legal problems.”
To help reduce the confusion, Colorado HealthOP is offering a free health insurance analysis to
help employers determine if renewal of their current plan, purchasing a plan on the health
insurance marketplace or directing employees to the individual market is likely to be the best
choice for them. The analysis considers the size and composition of a company’s workforce and
determines the optimal path for employers.
To learn more about how changes in healthcare will impact businesses, please visit
www.COhealthOP.org/Employer to opt in to updates from Colorado HealthOP. To schedule a free
health insurance analysis, contact Colorado HealthOP at 720.627.8900.
About Colorado HealthOP:
Colorado HealthOP offers a new alternative to traditional health insurance in Colorado. A
nonprofit health insurance cooperative, Colorado HealthOP and its members are committed to
providing affordable, quality coverage to individuals and employers interested in making a
difference in their own health, their employees’ health and the health of their community.
Colorado HealthOP aims to improve health outcomes by putting the responsibility for consumers’
care back into the hands of the cooperative’s members and providers. A private market solution
tailored for individuals and employers, Colorado HealthOP will begin open enrollment on October
1, 2013 via Connect for Health Colorado, Colorado’s health insurance marketplace, and through
independent brokers and agents. Coverage will begin January 1, 2014. For more information
about Colorado HealthOP, please visit www.COHealthOP.org or call 720.627.8900.
Communications Strategy Group
3225 East 2nd Avenue
Denver, Colo 80206