Bad news keeps on coming

Health care insurance brokers are getting a large dose of experience in being deliverers of bad news, courtesy of the Affordable Care Act.

That's the biggest takeaway from a survey of the broker industry by Benefitter, a health care data, consulting and software firm. Benefitter reports higher rates from insurance firms have caused “an unprecedented number of employers” to stop offering group health benefits. In some cases the premium costs for employers doubled over the past year. The survey, of more than 1,000 nationwide insurance brokers, reports at least three out of four had employer clients who dropped health coverage and instructed employees to purchase their own insurance.

“As we enter open enrollment for the public market, it's becoming more apparent that individual rates are often much more affordable than group rates,” Benefitter CEO Brian Poger says in a release. “It's no surprise that many business owners are responding to continued group rate increases with their feet.”

Florida ranks high in broker industry turmoil, the survey shows. The state is one of 10 with a coverage drop rate greater than 15% of all employers. On the broker side, 85% of the profession in the state has seen some clients drop insurance, while 80% reported average rate increases in the double digits. Even more ominous: One-fourth of health care insurance brokers in Florida expect to lose more than 25% of their group clients to the individual market next year.