New Federal Rule Could Impact Small Businesses Looking to Purchase Health Insurance for 2020


New Federal Rule Could Impact Small Businesses Looking to Purchase Health Insurance for 2020

CONTACT:  Kristofer Eisenla, LUNA+EISENLA media | 202-670-5747 (mobile)

New Provisions to the “Patient Protection and Affordable Care Act” Will Likely Impact Eligibility, Enrollment and Coverage Details

WASHINGTON, D.C. – Tomorrow, November 1st, open enrollment for the nation’s health insurance marketplace will officially open for those small businesses looking to purchase policies for 2020.  A recently proposed rule from the Federal Register, introduces changes to the Patient Protection and Affordable Care Act, the nation’s healthcare law, which has resulted in new benefit and payment parameters for 2020 that will likely impact America’s small business and self-employed community.  Provisions of the proposed rule impacting both current and future health care and Medicare beneficiaries could affect eligibility, enrollment, and coverage details.

“Tomorrow the nation’s health insurance marketplace officially opens for the 2020 season and America’s entrepreneurs need to know about the important changes that could have a significant impact on them,” said Keith Hall, President and Chief Executive Officer.  “The new provisions should ultimately strengthen the integrity of both federal and state-based health insurance exchanges.  Overall, 2020 enrollees will benefit from a more predictable regulatory environment, lower prescription drugs costs, and greater transparency.  How it impacts individual entrepreneurs will largely depend on specific circumstances, therefore we are encouraging all small business owners to closely review updates and changes now.”

In order to prepare small business owners, the National Association for the Self-Employed (NASE), the nation’s leading advocate and resource for the self-employed and micro-business community, has dedicated this month’s Self Informed Magazine to provide small business owners with a complete summary of proposed open enrollment changes that will impact policyholders during this year’s enrollment period.

Hall continued, “Although out-of-pocket expenses may increase short-term, individuals will have access to more enrollment options, hardship flexibility, and special enrollment options. Fee rate reductions and improved risk adjustment calculations should help prevent significant premium increases in the future.”

Topics for Discussion:
 - Open Enrollment Term: The period now runs between November 1st through December 15th
 - Sign-Up Before December 15th to Begin Coverage January 1st, 2020:  You must complete your new or renewal application before 11:59 p.m., Dec. 15, for your health insurance coverage to begin Jan. 1, 2020. If you miss this deadline, you will not be able to sign up for a Marketplace health plan until Nov. 1, 2020, a full year from now. Once you sign up with a plan, you must stay with that plan for 12 months.
 - New HRA Rule Goes Into Effect for the First Time This Year:  This will also be the first year that employers can offer a new health reimbursement arrangement (HRA) option to employees to purchase coverage in the individual market. Employers can offer this new HRA pursuant to a new rule finalized in June 2019 and a proposed rule issued in September 2019.

NASE was a major proponent of the new HRA rule and advocated on the issue for several years since the passage of the ACA and previous guidance restricting HRA use by small employers.


The National Association for the Self-Employed (NASE) is the nation's leading advocate and resource for the self-employed and micro-businesses, offering a broad range of benefits to help entrepreneurs succeed and to drive the continued growth of this vital segment of the American economy.

The NASE Next Biz Thing helps identify and connect our nation’s smallest businesses. Need small business help? Check out NASE’s Ask the Experts for advice or the NASE Minute for small business support.

The NASE is a 501(c) (6) nonprofit organization and provides big-business advantages to hundreds of thousands of micro-businesses across the United States. For more information, visit the association's website at

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