The Bay State will get an extra year before it's forced to comply with an Obamacare provision small business groups say would boost insurance premiums for their members, but the delay doesn't go far enough to ease the burden, advocates argue.
The one-year delay pushes back the federally mandated "rating factors" for small businesses, which would replace those currently used to determine health insurance premiums. The federal system eliminates several factors, including industry and participation rate.
"It in no way represents a solution to what is a very serious problem," said Chris Geehern of Associated Industries of Massachusetts.
Geehern said AIM found that 60 percent of small business owners would see premiums go up, possibly as high as 57 percent for some. The other 40 percent will likely see a rate decrease.
Jon Hurst, president of the Retailers Association of Massachusetts, said a permanent waiver would be ideal, but the delay is helpful.
"What it does is buy us time," Hurst said. "We know that the Affordable Care Act needs to be changed."
Gov. Deval Patrick had originally asked Health and Human Services Secretary Kathleen Sebelius for a permanent waiver, which was denied. Massachusetts has already been granted a three-year transition period to phase out the old rating factors, which now must be phased out by 2017.
"I thank the Obama Administration for affording us this flexibility that will help our small businesses more smoothly transition into compliance," Patrick said in a statement.
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