Workers To Pay 14% More For Family Health Coverage

[Rivers1]

I see this as an excellent opportunity to break-up small groups into indy plans. I'm thinking my focus will be 10 employees and under since those small groups will likely have less chance of involving folks with major preX. Thoughts?

Workers Paying 14% More For Family Health Coverage This Year, USA

Also, prospects I spoke to last week have stated rate increase notices are starting to be received from BCBS of NC. Notice states 10-30% increases, but no definite number.

This might turn out to be an extremely busy fall season!

 

[dgoldenz]

That's a fine line to walk...out of any group with ~10 lives, I can almost guarantee there's at least one uninsurable person in one of those employees' families that won't be too happy that an insurance agent suggested breaking up the group. Tread carefully.

 

[Rivers1]

Exactly, I have some reservations, but I'm getting referral calls from business owners wanting to dissolve their group plan because of cost. North Carolina's state run plan is pretty good but like all, expensive. I actually helped a group of five go indy last week, husband/wife(owners) and 3 employees.

If reform rolls out in it's current GI form, I think many business owners will be looking to make a change to save money if possible. I could be wrong, time will tell.

 

[Full Throttle]

Exactly, I have some reservations, but I'm getting referral calls from business owners wanting to dissolve their group plan because of cost. North Carolina's state run plan is pretty good but like all, expensive. I actually helped a group of five go indy last week, husband/wife(owners) and 3 employees.

If reform rolls out in it's current GI form, I think many business owners will be looking to make a change to save money if possible. I could be wrong, time will tell.

Also, make sure to double check their eligibility for the tax credit if they keep the group design. Usually not much of an incentive, but worth checking.

 

[669comche]

Haven't I read somewhere that businesses will be fined for not offering health insurance to its employees??

I may be wrong of course..........I have read so much I don't know whether to pick my nose or scratch my a***

 

[AllenChicago]

Haven't I read somewhere that businesses will be fined for not offering health insurance to its employees??

I may be wrong of course..........I have read so much I don't know whether to pick my nose or scratch my a***

You're quite right. Starting in 2014, both businesses and individuals will be fined $$$ for not having health insurance. BUT, the fine is less than the insurance premium by a large margin. Many will opt to pay the fine, or just not do anything at all and hope that our massively inefficient government apparatus never catches them.

 

[Crabcake Johnny]

AT&T, Verizon, others, thought about dropping health plans - May. 5, 2010

There's a missing element in this story - pay raises. Let's keep the math simple and assume my company is currently spending 12K a year on my health insurance.

The company, however, drops it because they can pay a 3K fine. That's ok...but what about my other 9K? The company pockets that? I think their employees would go nuts.

 

[669comche]

Do you think that their employees actually calculate that??

I mean do employees actually count health benefits as income??

 

[djs]

I don't know of many companies that pay 12K for a single employee. Family members usually require a significant employee contribution.

Yes, employees count this as income as soon as they are given a bill to pay their own health insurance. If they don't see the bill, they might think of it as a $100 a month benefit. Unless they see the doctor frequently, they don't think of it as much more than that though.

But, to use Johns example, $12K for health insurance - $3K for fine = $9K. They will give the employee a $3K allotment for benefits and call it even, pocketing the $6K balance.

Dan

 

[Crabcake Johnny]

Do you think that their employees actually calculate that??

I mean do employees actually count health benefits as income??

Yes. If my company was paying for most or all of my benefits then the announcement is made that I no longer have coverage effective "X" date the first thing that'll go through my mind is: "Where's my pay raise or cash to get my own plan."