Small Business Health Insurance Premiums Under AttackAug 2008
Massachusetts health insurance has seen a lot of fluctuation this year, as the state struggles to balance its new mandatory health coverage laws against rising, and in many cases unexpected, costs.
And one place where there could be significant increases in premiums and payments appears to be small business health insurance.
This week's proposals by Governor Deval Patrick are designed to help close gaps in funding that sprung up when more state citizens than had been expected signed up for medical coverage. The huge influx of new insurance consumers, the majority of whom qualify for state subsidizing of their coverage, has led costs for Massachusetts health insurance to be much higher than legislators had previously assumed.
Their stated goal, however, is to find the right way to tweak a very dysfunctional health care system, which is why new legislation is popping up in an effort to ease the burden on the state.
But as employers are finding,
small business health insurance premiums look like they're going to have to pick up some of the slack. Currently, the laws require employers with more than 10 full-time employees to offer some form of Massachusetts health insurance, or to pay a yearly penalty of $295 per worker. Employers could choose between paying 33% of employees premiums within the first 90 days of employment, or make sure that at least 25% of their employees have coverage.
Facts on:
Massachusetts Health Insurance
Did you know...
Upcoming legislation for Massachusetts health insurance could cost small business owners thousands of dollars more per year?
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Patrick's new plan, however, would require business owners to meet both requirements, or pay the penalty. And, with small business health insurance costs rising year-by-year, many employers might find it cheaper to pay the fines than to offer coverage.
Yes, it's important to offer coverage to working Americans. And yes, Massachusetts should keep working until their health care system becomes what it has the potential to be. But doing so at the expense of small business owners is only going to hurt their state economy, and land a lot of people in emergency rooms instead of in a doctor's office where they belong.
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