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Small businesses concerned about effects of health care act

Published: Tuesday, Sept. 10 2013 7:10 p.m. MDT

In this Thursday, July 18, 2013, photo, President Barack Obama stands with families who benefited from the health care law provision that provides consumers with a refund if their insurance company doesn’t spend the majority of premium dollars on medical care, as he speaks about health care reform and the Affordable Care Act in the East Room at the White House in Washington. In his speech, Obama said rebates averaging $100 are coming from insurance companies to 8.5 million Americans. In fact, most of the money is going straight to employers who provide health insurance, not to their workers, who benefit indirectly. (AP Photo/Charles Dharapak, File)

Charles Dharapak, ASSOCIATED PRESS

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SALT LAKE CITY — Beginning next month, employers large and small will start open enrollment for health care benefits — a process that will involve the implementation of the controversial Patient Protection and Affordable Care Act.

While passage of the law requiring most employers to provide health insurance has been seen by some as a major victory for workers, the reality of putting the plan into place has been a big headache for many companies forced to follow the 2,700-page measure that even members of Congress have said they don't completely understand.

The aim of the ACA, also known as Obamacare, is to increase the quality and affordability of health insurance, lower the uninsured rate by expanding public and private insurance coverage, and reduce the costs of health care for individuals and the government.

However, some critics argue the measure could increase insurance premiums for many employers and individuals because the law requires insurance companies to cover all applicants within new minimum standards and offer the same rates regardless of pre-existing conditions or age.

Speaking Tuesday at a news conference at the annual Small Business Summit at the Salt Palace Convention Center, Salt Lake Chamber president and CEO Lane Beattie said the new law will be a big change from the way employer-based health insurance has been handled traditionally.

“This is a significant shift in the way that we have done health care in this country for many, many years,” Beattie said.

According to a survey conducted by the Cicero Group for SelectHealth, 90 percent of local business leaders say it's very important to provide health care for their employees, but the ACA is perceived negatively by the majority of businesses.

Many are unhappy because they have to comply with confusing and unfamiliar rules and regulations, explained Greg Matis, senior counsel for SelectHealth.

Matis said some business owners believe the ACA will cause greater confusion for employees’ health coverage, largely due to more paperwork and hassle.

The survey indicated that business leaders are largely uninformed about the requirements of the ACA, with 81 percent admitting they were unsure of all the requirements needed to be fully compliant.

Julie Christensen was among the business professionals in attendance at the conference. Christensen, human resources manager with Propeller Inc., a Provo-based logistics and fulfillment services company, said she came to the event with 1,000 questions about the health care law and fortunately was able to get many of them answered.

Christensen said her company of about 25 people would likely be best served by using Avenue H — the state’s Internet-based information portal connecting consumers to information regarding health care coverage options and financing.

“That’s probably going to be the best benefit for our employees and more affordable because they can get individual policies,” she explained.

The Avenue H system will provide a streamlined option for processing health care related claims for companies and their workers, as well as giving them more control over their provider choices, Christensen said.

She said the information she learned at the conference has left her more informed about the ACA and much less fearful about its potential impacts.

“I thought mostly the big change would be that they would bump up the (insurance) prices like crazy in order to give everybody coverage,” Christensen said. “But it looks like my younger employees’ rates will go up, but my middle-age and older employees' rates are going to go down.”

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