Small Business Health Insurance and Employers' Struggle with Costs.Sept 2007
In Georgia, most employers struggling to offer
small business health insurance to their employees won't stand to benefit from the $50 million Governor Sonny Perdue has lined up for them. Instead, as more and more states mandate coverage, individual medical insurance will likely be the next stop.
According to
ajc.com, the number of employees identified by the Department of Labor as working for small businesses in Georgia totals 1.5 million. However, the $50 million, targeted to workers earning up to $62,000 per year for a family of four, is only projected to cover 30,000 employees. The number of eligible uninsured is thought to be 380,000. So for the most part, only a small percentage of workers and employers can look forward to less expensive small business health insurance.
What about everyone else? As fewer and fewer small businesses (and big ones, for that matter) can afford to offer employees coverage,
individual medical insurance plans gain in popularity. This is especially the case in areas where some form of coverage will soon be mandated. However, purchasing individual coverage isn't a piece of cake either.
Facts on:
Employees Struggle with Individual Medical Insurance
Did you know...
In Farmington, New Mexico the state employee medical insurance tab is slated to cost about $5.2 million next year?
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Individual medical insurance can cost more for those with previous conditions. This is why it's so important for people to attend yearly checkups and maintain a healthy lifestyle - it costs everyone less in the long run. Small business health insurance plans have historically been cheaper for the employee (though not always for the employer) because group insurance goes for lower rates than individual coverage. In a group plan everyone pays some amount, though the odds are that only a few will get sick. This makes them a good bet for insurance agencies.
Fortunately many insurance agencies are now offering "tailor-made" plans that can be based on the individual needs of the consumer. It's important to be aware of what total costs would be for any plan, including prescription costs and deductibles, but by shopping around and carefully comparing both plans and agencies, it's still possible to find an individual plan that suits your needs without emptying your wallet.
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