Health costs clobber small firms
The 52-year-old self-employed newsletter publisher has limited health insurance options for him and his wife, so he signed up for coverage through the Clarence Chamber of Commerce. He's already been stretched thin by past premium increases for his health insurance, which now costs $1,800 a quarter.
But the last straw was the 24 percent hike he just got for next year from Independent Health Association. The first $2,240 payment is due in a month.
"That's a significant increase," he exclaimed. "Suddenly I'm paying $100 more a month for my health insurance, without any warning. What gives this industry the right to do that?"
Lorenzo is experiencing the same sticker shock that is hitting small businesses and consumers across Western New York, as they learn how much their health coverage will cost them next year.
Across the board, the big three local health insurers are raising premiums from 8 percent to 12 percent. But that includes all of their plans and coverage types, for large and small employers.
As Lorenzo learned, the hit is much harder for small employers. On average, small groups, typically with from 2 to 50 employees, will be paying 14 percent to 18.4 percent more. Some, like Lorenzo, could see increases of 20 percent or more.
"I'm just now telling people. Most of them, I ask if they're sitting down and have restraining things on their arms," said Howard N. Silverstein, CEO of Choice Employee Benefits Group LLC, an insurance agency in Williamsville.
References :http://www.buffalonews.com/editorial/20061210/1069573.asp |
