Health Insurance: What Now?

It’s Getting to be that time of year again when the eyes of private business people shift  to the cost of providing Health Insurance for employees.  I can’t speak for big business America, I don’t work there, and don’t have clients there, so my experiences and knowledge fall in the Mid- to Small-Market range, companies with less than say 250 employees.  For Upstate New York, (commonly known as “God’s Country”), that is a large cross-cut of the employer base since our State Government decided to tax Large manufacturing operations out of the New York State.

Needless to say, for most business owners Health Insurance is just as big a concern this year as it was last year.  But Wait! Didn’t the Federal Government pass a magical health care bill that would save us from yearly health care cost increases of 30%…? Hopefully I can clear a few things up:

Yes… A Health Care Bill was passed

No… The Health Care Bill is not magical

The Health Care Reform Bill

Ryan, I don’t care about your political agenda and innuendo.  Just tell me what this new bill means to my business.

I like your attitude and I apologize.  I will try to be not so biased towards Capitalize (Whoops…).

Most of the changes that our elected officials so diligently pontificated about for the majority of the Winter last year will take effect in 2014.  However, there were some changes which took effect immediately and you have access to those changes during this year’s health care renewal season.

Highlights of Immediate Changes:

• Carriers can no longer deny coverage for pre-existing conditions
• Carriers cover dependents till 29
• Carriers cover non-depedents (think students) till 26

No big savings, just expanded coverage that you will feel in your premiums.  Despite the obvious increase in cost associated with expanding coverage, these are good mandates as far as the coverage they provide.  How you are going to pay for them as a small business when you could barely afford Health coverage before only a politician could sell you on.

Changes for 2014:

• All Americans are required to carry health coverage or will be fined
• Health Care Exchanges created for easier access to Health Markets
• Medicare expanded to cover 133% of poverty line (~$22,000 for family of four)
• Employers of 50 or more people fined if Health coverage not offered

Yes you read that first bullet correctly, now if you can’t afford Health Insurance the government is going to fine you.  Don’t worry there is always Medicare.  In theory Health Care Exchanges should bring the cost of Health Insurance down but I still haven’t read anything of substance which explains exactly how that happens.  I would love for someone with Cardinal knowledge on Health Exchanges to leave a comment below.

How Do We Pay For Expansion of Medicare & Creation Health Exchanges?

TAXES… Get ready, Buy Gold…

The Rub

As you may be able to tell I’m not a huge fan of the Health Care bill or the Federal Governments involvement in the Health Care process to this point.  The reason health insurance premiums, in my opinion, are so high is the COST of health care providers.  I’m not bashing or blaming doctors, the medical assistant staff, or providers of any sort.  The service these people provide to our society is invaluable. But the cost of service is choking our way of life.

The Rub II (The Final Rub)

So as a Small Business in America trying to do the right thing and provide Health Insurance to the employees that make your business successful what are you supposed to do about the cost?  My best and only advice are these three items:

• Don’t go direct to carriers… Work with a Broker that knows the Market and Products
• Shop your insurance to every carrier every year… There is no such thing as carrier loyalty
• Develop a firm understanding of your employees and their specific needs… Never assume you know what they need

Disclaimer:

This article is for informational purposely only. There is no legal advice being suggested or proffered and the author assumes no responsibility or liability for the actions take or not taken by the readers based upon such information.

Thank you,

Ryan H.

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If you would like to discuss receiving a proposal for either your personal or business insurance program email me, or call me at (518) 456-6688.

Read my syndicated post on Health Insurance originally published to Under30CEO.com 4 Pieces of Advice on Health