Health Insurance System Destroying American Entrepeneurship

[wordpix]

After twenty years of working for other people, I started my own business in 2009. One reason I was able to afford not having a steady paycheck right away was that I took Cobra insurance from my former employer, and with the stimulus package Cobra was subsidized so my health insurance cost was very reasonable.

In my first year in business, I did very well and was able to pay all my bills on time, take care of my elderly mother with Alzheimer's, and put away a little for retirement.

However, the Cobra subsidy will end soon and I am facing something like $600/mo. for health insurance. This is a lot for someone who is starting a fledgling business. BTW, I am in excellent health and in my late 50's, I've only had one minor health problem that is now cured.

This health insurance system is destroying entrepeneurship. I foresee that, going forward with my business, I might do well enough to hire a steady part-time employee and grow from there, but due to the health insurance cost, forget it. Instead, I may have to fold. Finding a job with full health benefits is another story at my age.

Would love to hear of others having the same struggle.

[SocialistLez]

1. I KNOW you are not alone.

Lots of small business owners are being crushed.

One way the big boys win again is being able to have a large workforce to spread the risk among employees.

I saw something on Frontline where one woman whose child was born premature caused the premiums of her small employer to go up by about 30%.

[wolfgangmo]

12. It one of insurance companies little fun tricks.

Let's say your company offers insurance and you are covered. And then your spouse gets a rare form of cancer. You better PRAY that the diagnosis comes just after the insurance policy is renewed for another year. Because here is what will happen.

At renewal time the insurance company will send a little letter to your employer that proposes a HUGE increase in premium for the same or less coverage. When the company asks why they will be told a long specific list of demographic information that points to increased costs. By law the insurance company can't say "SocLez's" spouse is costing us money but they will give a list looks like this; "cost increase catagories; lez life partners +56%, cancer costs +45%, women partners between the age of 36 and 36.4 who grew up in Michigan, lettered in basketball in college and graduated from Vasser +297%. Proposed increase in premium $1,000,000. " Trust me they will make it clear that as long as your company fires your ass then they will pay less.

Now imagine just how much worse this is for smaller companies. And yes, it's legal.

[eridani]

23. Even after "reform" it's still legal

Sure, they can't cancel the policy, but there are no restrictions whatsoever on raising premiums,

[wolfgangmo]

13. It one of insurance companies little fun tricks.

Let's say your company offers insurance and you are covered. And then your spouse gets a rare form of cancer. You better PRAY that the diagnosis comes just after the insurance policy is renewed for another year. Because here is what will happen.

At renewal time the insurance company will send a little letter to your employer that proposes a HUGE increase in premium for the same or less coverage. When the company asks why they will be told a long specific list of demographic information that points to increased costs. By law the insurance company can't say "SocLez's" spouse is costing us money but they will give a list looks like this; "cost increase catagories; lez life partners +56%, cancer costs +45%, women partners between the age of 36 and 36.4 who grew up in Michigan, lettered in basketball in college and graduated from Vasser +297%. Proposed increase in premium $1,000,000. " Trust me they will make it clear that as long as your company fires your ass then they will pay less.

Now imagine just how much worse this is for smaller companies. And yes, it's legal.

[Greyhound]

2. The corporate subsidiary we call our government has been crushing entrepreneurs

for generations. If more people knew of and understood the business cycle, we might tip to how completely ass-backward our policies are.

The best thing President Obama could do for the real economy would be to end the corporate welfare program called the SBA and replace it with information and direct low/no interest loans to small and micro businesses. Of course, promoting competition and economic activity is antithetical to his agenda.

[Bonhomme Richard]

3. It's a fact I would have never started my business if........................

it wasn't for my wife's employers health coverage.

[Phoebe Loosinhouse]

4. That has ALWAYS been the case

I have owned two small businesses and know that firsthand.

First of all, small businesses are small, so they don't have the large numbers of employees to diffuse risk. They end up being charged higher premiums. It has always sucked. I guess in the future, just 4 short years away, you and all your employees can go out onto the exchanges and hope that you find affordable individual coverages. Maybe, maybe not. I'm thinking maybe not since they never addressed the core issue of cost containment of CARE in the "reform". Our reform is essentially just a cost plus contract with the for-profits. They don't and won't care about reining in care costs, because it will never affect their bottom line. We collectively GUARANTEED them a profit. Sweet. Wouldn't you like us to guarantee your small business a profit, too?

[WinkyDink]

5. I pay over $550, and that is in a GROUP plan for retired teachers subsidized by my district.

Join the club.

[Oregone]

6. So many people are self-employed here on Vancouver Island

Or starting their own businesses. A lot of dads work out of their home, myself included. If you don't work for BC, or Thrifty's its one of the most viable careers (self-employment) here.

Couldn't be possible without UHC.

People here don't have a clue what its like in the states. Its a very fortunate situation

[wordpix]

18. I know, my son lives on Van Isl, too. He's looking for a job & is only concerned about hourly wage

Does not have a worry about health care coverage with next job. Wish that were the case for me :-(

[eridani]

25. I have a friend in Nanaimo who can be self-ssupporting because of single payer

She has congestive heart failure, and can't hold a regular job. She teaches computer classes at Malaspina and by bidding on contracts for it, teaches piano and walks dogs. In America she'd be dead or a permanent welfare case.

[Oregone]

26. I think Malaspina is VIU now

Thats around where I live too. Wonderful here.

America would transform in so many ways with single payer. A lot of people would be partially liberated from economic restraints.

[DirkGently]

7. Absolutely. And yet the Free Market Fundies deny it

Which do we want more -- to keep the "gubment" out of healthcare (except for Medicare, military benefits, etc etc etc) or to enable people to work outside of the context of a large company?

The amount of leverage companies with healthcare benefits have over employees is growing as a function of skyrocketing insurance premiums. People simply can't afford not to work for XYZ Corp, because to do so could literally mean death.

Which, maybe, is the way they like it.

[AllyCat]

8. Big business doesn't want any competition no matter how small

This is one way of keeping other business down by artificially propping themselves up. If we had single-payer, imagine the people who would be able to leave their crappy jobs and take the knowledge they've gained to start their own good businesses!

[wolfgangmo]

14. And other employees that HATE working for Corps.

Could get similar salaries working for small and midsized companies and be MUCH happier.

Corporations have their boots on the neck of the country and the people. I hate to admit it, but historically it is true that blood must run on the streets before the rich will give up even a dollar of ill gotten gains.

[SocialistLez]

16. I am sure that is why Wal-Mart doesn't want single-payer.

They say it will hinder them from attracting top talent but I think that is a load of bull.

[damntexdem]

9. The U.S. opted for an employer-based system after WWII.

Other developed countries were not so stupid.

We need single-payer.

[Scuba]

10. A single-payer plan would save you, and the US auto industry.

[SocialistLez]

17. It could save us all except insurance exces but fuck them and the Bentleys they drive. NT

[Scuba]

22. The CEO of Cigna makes $11,000+ per HOUR....

...his Bentley is chauffiered.

Health insurance execs are mass murderers.

[zipplewrath]

11. GOP will bring us nationalize health care

I've been predicting, long before Obama, that the GOP would ultimately bring us nationalized health care. As the costs continue to rise, the multi-nationals will get tired of having to bear that cost as a direct burden and want to move it over to the public sector. Ultimately, the GOP will use the "small business" mantra to get it passed.

[wolfgangmo]

15. I don't know about the GOP, but...

The US is already losing out on transnational investment. Toyota's new multi billion dollar Plant went to Canada because they have health care and an educated work force. The average Canadian is better educated and healthier.

[wordpix]

19. "Toyota's new multi billion dollar Plant went to Canada because they have health care"

Hello, Dems in the majority, are you listening?

[Phoebe Loosinhouse]

21. Which brings up the greatest mystery of all

Why has American business and industry not been kicking and screaming lo these many years to get off the employer based system which makes them non-competitive in the rest of the world? I'll never,never understand that.

Instead of trying to drive down wages to the level of the Third World countries, why not try to drive down costs by endorsing national health and emulating countries Canada and the EU? Which is our better role model?

[zipplewrath]

24. Probably afraid of where the funding would come

They've probably convinced themselves that the government would find a way to tax them, or otherwise cost them money.

[SocialistLez]

31. I still think they would come out a lot cheaper if we raised the Medicare tax. NT

[Abq_Sarah]

36. A reasonable suspicion

Considering that's what's been proposed.

[librechik]

27. word!

[eridani]

29. Class solidarity uber alles.

Those of us on the bottom should learn from that.

[Kat45]

32. I wondered that myself but I currently think that the corporations like

having all the leverage and power over their workers that comes with the workers being totally dependent on them for their health insurance, and therefore their health. Workers will do what they're told and not make any waves because they're terrified of losing their health insurance.

[Jakes Progress]

35. Because the dim souls that head those businesses

are not bright. They let themselves be seduced by the neocon line. They are just too dim to see the truth of what you say. They would rather think of themselves as "good republican bidnessmen" who rail against estate taxes, single payer, and anything that would aid the middle class. All of these would benefit their business, but they are not very bright people.

[w8liftinglady]

20. please read my most recent ltte-a good plan for health care

http://www.pnhp.org/publications/proposal-of-the-physicians-working-group-for-single-payer-national-health-insurance


LETTER: ‘On medical coverage’
Published: Thursday, June 24, 2010 11:01 AM http://www.thedailylight.com/articles/2010/06/24/opinion/doc4c237cf38e032065914660.txt

To the Editor,

One aspect of American families that has not improved with the election of Barack Obama is the lack of medical coverage. One out of three people (33.1 percent) under the age of 65 were uninsured for some or all of 2007-2008. Four out of five individuals (79.2 percent) who went without health insurance during 2007-2008 were from working families: 69.7 percent were in families with a worker who was employed full-time, and 9.5 percent were in families with a worker who was employed part-time. Although racial and ethnic minorities are more likely to be uninsured, whites accounted for nearly half (49.8 percent) of the uninsured in 2007-2008. Businesses are suffering too. Insurance premiums increased 73 percent between 2000 and 2005, and per capita costs are expected to keep rising.

Unfortunately, this is because both political groups have tried so hard to satisfy insurance companies that they have neglected the citizens, the patients.

Universal Health Care exists in almost all European countries. The United States is the only industrialized country in the world without a universal health insurance system. U.S. health care spending is approximately $2 trillion per year, or $6,697 per person. The United States continues to spend significantly more on health care than other countries in the world. Administrative costs account for 31 percent of all health care expenditures in the United States. The average overhead for U.S. private health insurers is 11.7 percent. Ninety percent of Americans believe the American health care system needs fundamental changes or needs to be completely rebuilt. Two-thirds of Americans believe the federal government should guarantee universal health care for all citizens.

The obvious cure for this increasing American problem is offered by Physicians for a National Health Program. This allows adequate humane health care with much less paperwork. Rather than try to elaborate on this, I’m referring you to an excellent resource sponsored by PNHP (http://www.pnhp.org/publications/proposal-of-the-physicians-working-group-for-single-payer-national-health-insurance ). The end results is better health care for patients and more satisfied work environments for physicians, nurses and ancillary health care workers. This would allow an increase in staff for local hospitals and more time with patients.

As a members of the medical field AND a patient more recently, I can see the benefit of this method. Please review PNHP’s program — and if you agree, contact your elected officials to initiate this program in Texas. Our friends, relatives and neighbors are depending on it.

[eridani]

30. Excellent

Should be an OP, and also in the White House inbox.

[laughingliberal]

34. Great letter! nt

[eridani]

28. The cheapest risk pool = the biggest risk pool. Now, boys and girls--

--can you tell us what would be the biggest and cheapest risk pool of all?

I knew you could!

[laughingliberal]

33. Agree 100%. The employer based health care system enslaves people to their jobs. nt