There was a time that only groups over 100 would ever consider this. Blue Cross recently added Blue Funding Solutions targeting groups from 51-99 employees. Why?
In 2016, the small group market is planned to be expanded to include groups 100 employees or less. In other words, groups of 51 -99 employees will no longer be able to “negotiate” their rates and their rates will be fixed no matter how bad or good their claims are. What does that mean?
Groups with bad claims will love this and applaud the change, while groups with good claims will look at alternatives like self-insurance, thus Blue Cross creating Blue Funiding Solutions targeting 51-99 employees now. Bottom line we see many groups in the 51-99 employee range , that have good claims experience, moving to self-insurance.
The belief that the addition of the 51-99 groups to the small group market (currently 1-50) that it will help the 1-50 market will never materialize. In fact, it may have the complete opposite effect as only groups with bad claim history will stay in the newly formed 1-99 small group markets in 2016.