Small firms scrapping, scaling back health plans

[Omaha Steve]

Source: AP

By DAVID A. LIEB

JEFFERSON CITY, Mo. (AP) - Faced with high health insurance costs, a North Carolina brokerage passed the buck on to its employees, a Texas public relations firm switched from group insurance to stipends, and a Missouri travel agency let its workers walk away instead paying for insurance.

Across the country, businesses already strapped by the economy to turn a profit are sacrificing or scaling back employee health insurance plans because of their escalating costs. The crunch has particularly socked smaller employers, who have become a centerpiece in the debate over how to overhaul the nation's health care system.

In recent weeks, small business owners have pleaded their case to the White House and Congress. Top Democrats in both the House and Senate have announced probes into how health insurers price their policies for small businesses. And lawmakers have proposed a variety of insurance rating changes, mandates and tax breaks to try to control costs.

That comes against a backdrop of some stark statistics:

- Small businesses are paying an average 18 percent more than the largest firms for comparable health insurance policies, according to a study financed by the Commonwealth Fund.

- Many small businesses are facing double-digit rate increases for insurance coverage this fall. Insurers are requesting small group rate hikes of 10-15 percent in Ohio, an average of 15-16 percent in Maryland and as much as 20 percent in Washington state, according to an informal survey by the National Association of Insurance Commissioners.

- The number of businesses with three to nine employees that offer health insurance has shrunk from 58 percent in 2002 to 46 percent this year, according to the Kaiser Family Foundation.


Read more: http://apnews.excite.com/article/20091118/D9C1S2VO0.html

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FULL story at link.

[wilt the stilt]

1. Anyone with any Business sense

would opt for single payer. It is unbelievable that the "party of business" are son effin' stupid

[mbperrin]

5. It's the difference in competitiveness globally.

Works out that a healthy, unworried workforce performs better than a sick, harassed one.

Whoda thunk?

Yes, single payer is the only way.

[Autumn Colors]

2. Unless you're a Corp. wanting to put small businesses out of business

EDIT: Sorry, I was replying to the post immediately above mine.

[pattmarty]

3. And, I still don't see how the so called "reform" will hold down costs.

[grilled onions]

4. Once Again We Need Coverage For Everyone

We don't need savings accounts or the so called options for those with the luxury of good health or ample bucks to pick and choose. We need blanket coverage for all. We need it for the most vulnerable. Workers, already stressed over working conditions should not have to worry about the what if's they lose their jobs/medical coverage. We need coverage to be constant and not be purged as soon as a person gets in a severe accident or gets a serious medical condition. We need it and we need it now.

[Blue State Blues]

6. "If you like the plan you have now, you can keep it..."

Except you can't when your employer drops it because it's too expensive.

[Sen. Walter Sobchak]

7. the firings at the firm my girlfriend works for were obviously driven by benefits

Interestingly enough those who were single or without children were virtually untouched in the downsizing, including a couple of people who were just useless and when my girlfriend attempted to take the voluntary severance package she was declined.

She is extremely upset about the downsizing and catastrophically bungled outsourcing i'm surprised she hasn't quit.

[boppers]

8. I LOVE how the benefit-rich have just recently noticed this problem.

People with Cadillac plans have finally noticed the last 20 years of cost, and benefit, cuts.

Very sad. Especially in the unions.