Will New Laws Help or Hurt Small Business Health Insurance?
October 2009
It's hard to keep up with all of the
health coverage news these days. Will there be a public option? Will costs be controlled?
And for many business owners the major question is, how will these laws impact our ability to offer
small business health insurance?
The debate regarding health coverage is headed towards a show down of sorts. There are no less than 5 major congressional committees with completed packages, which should hopefully be whittled down to 3 plans fairly soon. There will be one in the house, and two in the Senate that will be melded into one before the big vote. The final bill will likely be a reflection of all of these.
And according to the
Wall Street Journal, small business health insurance could benefit from the bills as they are evolving right now. Small business owners have been struggling to offer health coverage to employees for several years now, mostly due to rising costs, and to the higher rates they are forced to pay because their insurance pool is so much smaller.
In most cases, small business health insurance is 18% more expensive than the same policies paid for by big corporations. This is a lot of money, especially to small business owners who face strict budgets.
The article states that we'll likely see limits imposed on insurance companies that won't make anyone pay more for women, or for those with pre-existing conditions. This will be a big help.
But even more important, it's likely that some sort of mandate will make health insurance coverage a legal requirement for
all Americans. By creating such a large insurance pool, costs would be effectively lowered, making it much easier for small business owners to purchase coverage.
Facts on:
Health Coverage in Legislation
Did you know...
Some small business health insurance is 18% more expensive than the same policies paid for by big corporations?
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There are still some concerns, including potential taxes applied to busiensses who do or don't purchase coverage, and a need to reign in rising medical costs.
But if the Small Business Admininstrator Karen Mills is correct in her estimation, insurance is about to become less expensive to business owners, and much easier to obtain.
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