Expensive Medical Coverage Eats Into Small Business
The rising cost of
small business health insurance is making it nearly impossible for business owners to turn a profit these days; more and more, business owners who cannot provide enough adequate medical coverage must choose between losing potential profits, or employees.
The frustrating part of this trend is that it's difficult to know who to blame. Employees are just as desperate for an affordable health plan that will protect them and their families, but they're stretched to the limit as well. At
greatfallstribune.com, studies have found that "the number of businesses providing health insurance for employees stayed the same over the past three years, but, the portion of the cost borne by the employees increased."
As small business health insurance premiums go up, business owners are unable to pay more without losing money. That burden is shifted to the employee, who either pays more for medical coverage, or goes without a health plan at all. And, with insurance premiums going up 85% in the last 10 years, the latter is far more likely.
As Steve Seninger, director of health policy research for the UM Bureau of Business and Economic Research says, the fault lies with the system, not with the employers.
Small business health insurance has literally reached "the breaking point in terms of cost." But, while
medical coverage may be the hot topic with politicians and legislators, until the health insurance system in the country gets a major overhaul states themselves will keep up the struggle to subsidize lower bracket health plans, a plan that does little to help things, and racks up greater debt.
Facts on:
Small Business Health Insurance
Did you know...
Insurance premiums have gone up 85% in the last 10 years?
|
The best thing that business owners can do is to shop around, and find health plans that their employees can negotiate. So-called "cafeteria style" health insurance has been popular lately, largely because it doesn't force employees or business owners to pay for coverage that won't get used.
Hopefully, as laws change and legislation answers the needs of the people, change will be on the horizon for small business owners who want to protect their employees. Until then, employers and their staff need to work together to find the best overall plan to protect employees without significantly threatening the company itself.
Current Topic:
Recent Topics:
Past Topics:
