Portions of health care law defunded

Please note the comments provided here are representative of impact on the insurance market and do not contain political comments and is information for HR and brokers to understand and provide resources to clients.

The nonprofit ACOs are defunded and employees opting out of employer provided insurance also defunded. Possible impact are that the Individual market is saved preserving the loss of small family owned agencies. It also assists in preserving the group insurance. Meaning that if the young and healthy can leave their employers insurance to buy from the exchanges adverse selection can occur which raises the rates for the employees left in insurance thus creating a cost prohibitive premium for the remainder of employees. These are a list of possible outcomes.

Either way it was signed into law. http://www.foxnews.com/politics/2011/04/10/budget-deal-targets-pieces-health-care-law/