Access to federal exchange has been restricted
Federal health insurance exchanges in the U.S. were meant to offer coverage options for small groups and businesses, but this feature of the exchange initiative has been put on hold until 2015, at the earliest. The decision to postpone this aspect of federal exchanges is meant to provide the exchange network with more time to iron out the multitude of technical problems it has been having over the past month. The problem, however, is that this means many small groups and businesses that had been looking forward to receiving coverage through federal exchanges must now look elsewhere for policies.
Companies come together to form insurance trust
Anthem Blue Cross Blue Shield has joined with the Indiana Manufacturers Association in order to address this issue to some degree. The two companies are working to develop an alternative to federal health insurance exchanges that will provide small groups with access to exchange-like benefits. The initiative is meant to provide more flexibility for manufacturing organizations with 50 or fewer employees.
Manufacturers expected to benefit from new initiative
An estimated 500 manufacturers are expected to receive coverage through the new insurance trust set up by Anthem Blue Cross Blue Shield and the Indiana Manufacturers Association. The insurance trust is designed to provide these parties will comprehensive policies that are somewhat less expensive than those that can be found in the traditional private market. The trust also represents a new option in a field where options had, traditionally, been quite scarce.
Other companies may opt to form insurance trusts elsewhere
Other organizations throughout the country may choose to follow the example set by the Indiana Manufacturers Association. Small businesses are clamoring for better options, especially now that their access to the federal health insurance network has been restricted. Insurance trusts could help satisfy this demand and provide small businesses with much needed flexibility when it comes to the insurance market.