See the full article by clicking here
http://www.boston.com/business/ticker/2010/04/mass_rejects_re.html
Posts Tagged ‘small business’
The New Health Care Law- What’s the impact on small business?
March 25, 201060% of America’s uninsured are small business owners, their families and their employees. As we have heard from many of the small businesses that come to the Enterprise Center, the issue of Health Insurance has reached a crisis level. Small businesses have seen double digit insurance increases for several years. In fact, insurance premiums for small businesses have increased by 129% since 2000.
We are well aware that the new health care law is politically charged but the bill has many items that you may find of great interest to you and your business, including small business tax credits and the ability to buy into group insurance (2014). We hope that you will take a moment to look through the new Health Care Law (Click here to view a recap of the new Health Care Law) and weigh in on what you think about it.
Graphx: “53% increase this year after a 38% increase last year”
March 19, 2010We are a small software company celebrating our 25th year in Massachusetts. In the past we have attracted and retained qualified employees with benefits as medical insurance. In the current economy we are struggling to survive.
Here are the straightforward facts at our company:
1. We employ healthy non-smokers who are over the age of 55.
2. BCBS has informed us that our insurance rates are going up 53% this year. FIFTY THREE PERCENT.
3. This year’s increase follows a 38% increase last year and a 29% increase two years ago.
4. Every year for the last three years we have ratcheted down our company’s health insurance plan… to plans with higher co-pays, higher deductibles and less medical coverages.
5. Every year for the last three years I spend at between 1-2 man-weeks of my time researching all medical health plans options and switching health providers. In the last three years we have gone from BCBS to Tufts to BCBS. This year we will likely switch to Fallon. This considerable time investment is completely unproductive and unrelated to moving our business forward, which puts me at a disadvantage to my competitors outside Massachusetts.
6. NO employee has received any increase in salary or wages in five plus
years.
My View
1. BCBS Bill Van Fassen’s $16 Million dollar non-retirement retirement payout in 2006 should have been the definitive wake up call to the State Insurance Commissioner. Their spending IS out of control. The burden of this gross spending excess is directly on the backs of those who can least afford to pay, small business employees and owners.
2. In today’s difficult economy BCBS’s actions are both irresponsible and immoral. A 53% rate increase in 2010 should not be a rate increase acceptable to the State Insurance Commissioner. If BCBS truly cannot provide a lower rate than its license to operate in the Commonwealth should be suspended until they can return with a defensible rate.
3. The small business community, both owners and employees, wants and needs the Patrick administration to demonstrate real leadership and FORCEFULLY block these rate increases immediately, including threat of license suspensions or the option of continuation of prior year rates.
4. The Insurance Commissioner MUST communicate that annual rate increases are NOT a given. The insurance companies should be forced to operate more like small businesses, and every other business is the current depressed economic climate. Eliminate unnecessary costs, like TV advertising, and learn to do more with less… STOP passing on costs to those least able to fight large bureaucratic companies.
5. In Massachusetts we like to consider ourselves as progressive and forward thinking. Wouldn’t we then agree that the quality of health care in Massachusetts should NOT be a function of the company they work for. Health insurance rates for large company employees versus small company employees should not vary significantly.
6. This is much more than a political issue. This is a life and death issue.
The Commissioner of Insurance cannot error by strongly advocating, AND DELIVERING equitable health insurance options of Massachusetts residents.
Regards,
Joe
Joseph T. Kowalik
President & CEO, Graphx Inc.
Woburn, MA
New England Cranberry Company: “How can anyone pay what looks to be 40-50% (of salary) for health insurance?
March 18, 2010Our family policies for 2009 are approximately $13,000 per year each. Our
increase for 2010 is about 24% to $16,000. Only two years ago it was $9400,
and we have moved to less comprehensive plans. If you follow these increases
out only another two years, you are in the low to mid $20K’s per family. This
basically becomes a 40-75% tax on each employee, which is obviously a dis-
incentive to hire anyone.
If the median household income in the US is just over $50K, how can anyone
expect to pay what looks to be 40-50% of that for health insurance? I don’t
believe that costs to insurers are rising at this rate and where is the
competition? Everyone moves their rates in lock step.
Ted Stux
New England Cranberry Co.
Lynn, MA
Harbor Sweets: Impact of High Health Insurance
March 18, 2010At Harbor Sweets, I have personally participated in the ‘no win’ deliberations
and decisions small businesses in the Commonwealth have had to make for years.
We start with the fact that we are not financially able to offer the benefits
associated with corporate or public sector organizations.
The primary benefit we have provided, key to the well being of our employees,
is health insurance. This benefit has allowed us to retain valued and
valuable employees. Unfortunately the very fact of retention means an aging
employee pool – a serious disadvantage laid on top of the ‘average’ rate hikes
small business has seen to premiums over the past several years.
The options available to small businesses (since we are not allowed to negotiate with the insurance companies) are to reduce the level of benefits provided by the health plan or reduce the employer contribution. There simply is no way to avoid the added burdens this creates for both the Company and resulting negative impact on the employees. Clearly this benefits neither the employee not the employer.
Health insurance costs have increased at a greater rate than any other cost in our business. The dramatic increases in health care costs have a direct negative impact on our ability to grow our business, thus increasing jobs or wages to our employees.
Billie Phillips
Vice President of Marketing
Harbor Sweets, Inc.
Salem, MA 01970
Have an Opinion about Increasing Health Insurance Costs? Add your Voice!
March 18, 2010
The increase in health care premiums is terrible and unsustainable. That’s what dozens of small businesses have told us about their insurance rate increases-and we’ve experienced it too. The Governor was here recently and listened to 13 businesses report on the impact of increases on their companies. He promised help. We know that these increases can prevent hiring more workers or prevent growth of any kind. We know that businesses owners and employees have increasingly high deductibles and co payments and are experiencing lower incomes as a result. We want to hear from you about what you’ve experienced. Tell us your story. We want to make sure our policy makers continue to hear from many, many small businesses. This issue is growing. Please add your voice. Christine
Christine B. Sullivan
Executive Director
Enterprise Center at Salem State College
Small Businesses Looking for Relief- Salem News Article
March 15, 2010
Small-biz owners looking for insurance relief
By Paul Leighton, Staff writer
SALEM — Small business owners who have been hit hard by rising health insurance costs will look to Gov. Deval Patrick for help this morning in Salem. About 14 local owners of small businesses are expected to meet with Patrick at the Enterprise Center at Salem State College.
“They will simply talk about what terrible pain (health insurance) inflicts on their company,” said Christine Sullivan, executive director of the Enterprise Center, which provides programs for small businesses on the North Shore.
Sullivan said the high cost of health insurance is preventing small businesses from hiring workers and discouraging would-be entrepreneurs from starting their own businesses.
What is the consequence of high health insurance on small business?
March 15, 2010-Christine Sullivan, Executive Director, Enterprise Center at Salem State College
Rising health insurance premiums is having a huge impact on small businesses. We are listening. We established this blog as a forum for you to share your experiences with health insurance and how it impacts YOUR bottom line.
