Some features of the current Massachusetts law would be prohibited by the ACA. Massachusetts permits insurers to offer discounts to, for example, someone who works in a low-risk industry or participates in a wellness program. The federal law, on the other hand, requires premiums to be based on a single set of factors: family composition, the ages of covered members, tobacco usage, and geographical location. According to state officials, this will cause premiums to rollercoaster, resulting in “extreme premium increases” for many, and a decline for others.
A Pioneer Institute analysis found that 60 percent of small businesses in Massachusetts will experience a rate hike — for some the increase will be over 98 percent — due to this one regulatory change. These same employers are already bracing for the law’s 18 new taxes.
Source: National Review.