My company is a medical practice/surgical center with about 30 employees. We have just been notified that our BC/BS health insurance premiums are being increased by 26%. The employees pay 25% and the company 75%, and neither party can afford this increase. Last year when this happened, we increased the deductible and co-pay and still wound up with less in coverage. If we do the same thing again this year, the employees will have such a high deductible amount that some would drop off of the policy. If we don't do this, the premiums are such that some employees will still drop coverage and the company can't afford the increased premium payments. I want to maintain coverage for all employees but don't see how to do this. We have managed to keep from having any layoffs during the recession, but I don't see how to avoid this if the company picks up the increased expense. If we do that, the quality of care to our patients or customers will suffer. How are other small businesses dealing with this issue across the US?
Gary S Berger MD
tubal-reversal.net
--- This post was edited to remove a commercial link. Read our discussion policies for more Community best practices.
I was recently notified that my BCBS health insurance is going up 25% too! I
have read on the internet that "normal" annual increases should only be max
of 7%. There is no explanation for why ours is going up 25%. We small
business owners have zero negotiating power with our health insurance
providers. My employees can not afford to pay 50% of the premium and BCBS
requires that at least 50% of employees be insured to qualify for group
coverage. How does our government/state expect us small businesses to
survive. Before its over we will lose "good" employees to bigger companies
that pay their insurance. We can't compete to keep good help!
I understand that the health reform will provide us small business (1-25
employees) with the following benefits:
1) up to 35% credit on insurance premiums if employee pays at least 50% and
the credit goes up to 50% credit in 2014 (I think)
However............average employee income can not exceed 50k/yr.
2) In 2013 or 2014 there will be an insurance pool that small businesses can
use to reduce premiums comparable to what big companies are paying........I
will believe that when I see it!!! Insurance companies are already increasing
our rates by 25% because they know they will have to reduce premiums in the
very near future.
Its all a bunch of CRAP if you ask me....... there is no one watching out for
us small businesses. Between taxes.....insurance......and rising operating
costs how do we survive?
Health Reimbursement Arrangement ( HRA )
Insure with your local HMO plan $5,000/10,000 deductible, 100% thereafter, Closed formulary prescription drug with generic co-pay $15 & brand co-pay $50. Employee pays the first $1000 and the balance of $4,0000 to be split 50/50 with employee ($2,000 ) and employer ($2,000). If your employees are in good health, this financing arrangement may provide your firm substantial savings. Have your firm promote and reward good health habits with contributions to a FSA . Good Luck
I heard about the recent debacle about BCBS rate increases. I believe it was realated to Anthem. Anthem bowed to the pressure and decided not to raise health insurance premiums, at least until the Health Care debate was over.
The fact is, there are now over 45 million uninsured individuals in this country today; in addition, many of these uninsured individuals are fully employed - their employer just can't offer coverage. I highly suggest trying a few sites out there to compare health insurance quotes, coverage, and plan options. Unfortunately, I can't offer you any links here, because I've had them removed in the past, but if you search for health insurance in any search engine, you should come up with a few options.
I'm happy to help, just send me a message, and I might be able to connect you with the right people. I won't tout a particular provider, me being an independent agent for a number of providers, I can give you a relatively unbiased look at various health insurance companies.
Regards,
Alex
Addendum: At the risk of looking like I support a particular health insurance provider, I'm going to give you a list of potentials. Please note that I don't recommend or endorse any of them, but you may find them helpful.
Med Health Insurance
Affordable Health Insurance
Individual Health Plans
Health Insurance Carriers
---This post was edited to remove a commercial link. Read our discussion policies for more Community best practices.
Guys (and Gals)
Any guesses what will be the impact of recent Healthcare Changes which Obama Govt has signed into law today. What if you are a small company with just 10-12 employees.
Additionally will the premiums go up because I doubt that they have enough money to cover 30 million people (even with higher taxes on the rich), plus if Immigration reform passes, then it will mean another 10 million+ people who are undocumented today will become legal and Govt. will be forced to cover them ... ?
The recent legislative changes will most likely mean higher premiums for Health insurance accross the board.
As I understand them, they will effectively remove the insurers ability to decline to offer cover, or exclude cover on pre existing medical conditions. If insurers need to take on risk they otherwise wouldn't they will need to increase their premium pool overall to compensate for the increased claims exposure. Unless there is a significant federal subsidy or other means of offsetting these costs, they will be borne by other policy holders.
kmaitl1 | Window Shopper | 8/8/2012 - 12:08 am
have read on the internet that "normal" annual increases should only be max
of 7%. There is no explanation for why ours is going up 25%. We small
business owners have zero negotiating power with our health insurance
providers. My employees can not afford to pay 50% of the premium and BCBS
requires that at least 50% of employees be insured to qualify for group
coverage. How does our government/state expect us small businesses to
survive. Before its over we will lose "good" employees to bigger companies
that pay their insurance. We can't compete to keep good help!
I understand that the health reform will provide us small business (1-25
employees) with the following benefits:
1) up to 35% credit on insurance premiums if employee pays at least 50% and
the credit goes up to 50% credit in 2014 (I think)
However............average employee income can not exceed 50k/yr.
2) In 2013 or 2014 there will be an insurance pool that small businesses can
use to reduce premiums comparable to what big companies are paying........I
will believe that when I see it!!! Insurance companies are already increasing
our rates by 25% because they know they will have to reduce premiums in the
very near future.
Its all a bunch of CRAP if you ask me....... there is no one watching out for
us small businesses. Between taxes.....insurance......and rising operating
costs how do we survive?
gofigure11 | Window Shopper | 3/11/2010 - 9:21 pm
alexusc | Performer | 3/16/2010 - 6:37 pm
aruba77 | Window Shopper | 3/23/2010 - 1:26 pm
mrhelpful | Contributor | 3/23/2010 - 11:20 pm
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