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Health Insurance renewals

realflnative

Bull Gator
Gold Member
Dec 13, 2002
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Just had the annual group health insurance renewal meeting with my agent. This is how the affordable care act is affecting me and my employees so far...

Since 1976 we have always paid 100% for our employees and we also cover spouses and children for a few of our key employees who have been with us for 20+ years. To keep the plan we have now, which is a really good plan, our rate increased 30% from last year. After December 31 we will be forced to drop the spouses and children of our key employees to avoid discriminating against our other employees in the government's eyes. I also expect another rate increase at that time.

December 31st there will be 4 employee's spouses and 5 children that will lose their coverage. The business can not afford another 30% increase for health insurance. Changes are coming!!!!





This post was edited on 9/30 1:49 PM by realflnative
 
Originally posted by realflnative:

The business can not afford another 20% increase for health insurance.
My family's health insurance premium has pretty much jumped every year for the last 15-20 years. I wonder where all that extra money is going?
 
You're right Theo. If we could just go back to the way medicine was in the 80s there would be no healthcare crisis.
 
We were told the purpose of Obamacare was to control costs and cover more people....yet the costs continue to rise, and fewer people will be covered. Initially we were told that 30 million didn't have coverage and needed....guessing it would have been cheaper and simpler to just buy them insurance outright.
 
Originally posted by GatorTheo:


Originally posted by realflnative:

The business can not afford another 20% increase for health insurance.
My family's health insurance premium has pretty much jumped every year for the last 15-20 years. I wonder where all that extra money is going?
health insurance companies margins are something like 3%, do some research.

And the costs were rising relatively in step with inflation and increasing costs on the supply side, the increases are now growing by way larger margins than that, this is different, stop making this about something it's not.

You're like a very simple, bitter, poorly written song with only one note.
 
Originally posted by BigOleNastyGator:

You're like a very simple, bitter, poorly written song with only one note.
Did you forget 'intentionally obtuse'?
 
Originally posted by GatorTheo:


Originally posted by BigOleNastyGator:

You're like a very simple, bitter, poorly written song with only one note.
Did you forget 'intentionally obtuse'?
You're on repeat my man, your only response to any topic is "CEOs.....waaaaaaah" Business waaaah"
 
Originally posted by GatorTheo:


Originally posted by BigOleNastyGator:

You're like a very simple, bitter, poorly written song with only one note.
Did you forget 'intentionally obtuse'?
Reconcile a 1 or 2% increase every couple years with massive 20% rate spikes. It's clearly related to Obamacare, but you won't acknowledge that, I know you understand it to be the truth, therefore you are being obtuse. The reason virtually everyone on this board will describe you that way is because it's true.

And you're not even creative, you literally do the same thing in every thread, and 90% of the time it doesn't make sense, its just all you're capable of.

Go make some more money and stop crying dude, whatever happened happened, now butch up.
 
Wow. I was just informed that I was given incorrect spreadsheets. Our policy did not increase 19%, it increased 30%.

For the same coverage on 15 employees I will have to pay $2,100.00/ month more. This isn't going to work out very well at all.




This post was edited on 9/30 2:03 PM by realflnative
 
Originally posted by realflnative:
Wow. I was just informed that I was given incorrect spreadsheets. Our policy did not increase 19%, it increased 30%.

For the same coverage on 15 employees I will have to pay $2,100.00/ month more. This isn't going to work out very well at all.





This post was edited on 9/30 2:03 PM by realflnative
Careful. Theo will come after you when he finds out you're one of those awful dirty bossman types.

Theo is a bitter person who is still in one of those open work stations after all these years, wondering why he didn't shoot to the top. I'ts gotta be the man's fault.
 
Originally posted by badselectioncommittee:

Why can't you Righties have a discussion without name calling?
That's an interesting question. When you think about the posters here who personally insult the other posters routinely.....every one of them is a right winger. Historically, this board has been very right wing friendly so maybe they're just more comfortable doing it.
 
Originally posted by BringBackBonner:
I have seen 10-15% increases in premiums for no increase in coverage levels this year at the small businesses that I work with.
Posted from Rivals Mobile
My premiums went up almost 30%. Of course I could take the easy way out and blame Obama but that would be intellectually dishonest since it hasnt even been implemented yet. It was explained by my broker that Half was due to cost experience adjustments and half due to employee demographics. I have a feeling that some insurance companies are using Obamacare as an excuse to jack up rates. I will use the exchange to compare rates and switch if cheaper than BCBS. This is one of the ACA's benefits to small businesses.

Congrats, though, to the OP for using Obamacare to reduce employee benefits, as it wont even affect him since he has less than 50 employees.
 
Originally posted by badselectioncommittee:


Originally posted by BringBackBonner:
I have seen 10-15% increases in premiums for no increase in coverage levels this year at the small businesses that I work with.

Posted from Rivals Mobile
My premiums went up almost 30%. Of course I could take the easy way out and blame Obama but that would be intellectually dishonest since it hasnt even been implemented yet. It was explained by my broker that Half was due to cost experience adjustments and half due to employee demographics. I have a feeling that some insurance companies are using Obamacare as an excuse to jack up rates. I will use the exchange to compare rates and switch if cheaper than BCBS. This is one of the ACA's benefits to small businesses.

Congrats, though, to the OP for using Obamacare to reduce employee benefits, as it wont even affect him since he has less than 50 employees.
Not all of it has been implemented.....FSA cap and disallowing OTCs already rolled out (way to help the middle/working class).

It seems perfectly reasonable to increase the price of your product or service when you know your costs are going to increase (or very likely could). Which for an insurance carrier they will when coverages are increased. I would fully expect State Farm to raise my comprehensive and collision premiums as soon as they find out I have traded in my '07 Saturn toward the purchase of a 2014 Lexus.....regardless of whether or not I have filed any claims. Much the same, if a health insurer has to take me on, pre-existing conditions and all, I would expect the charged rate to reflect that reality.

Question....have you not asked your broker to comparison shop previously? Plus, as I type this I'm looking at an eHealth ad. Is this part of the Obamacare exchange or something that already existed? 10,000 plans from over 180 carriers.
 
Originally posted by badselectioncommittee:


Congrats, though, to the OP for using Obamacare to reduce employee benefits, as it wont even affect him since he has less than 50 employees.
No need to be prick. It's kind of hard to make me look like a bad guy when I have always paid 100% of a really good health insurance package for all of my blue collar employees. That's not what greedy business people do. From everything I've heard that's not what ANY business people do.

I am not required by law to participate but if you don't think it's affecting me and my employees and every other American you are wrong. This deal is being sold as affordable health insurance for everyone. The OP was meant to share the changes we've seen in the market so far and it's not more affordable and I can not continue to pay 100%. I am not happy about it, in fact I am extremely upset about it. I am not using it to reduce benefits. It's basic accounting. Things are tight. If we want to stay open we can not continue to pay 100%.

If I pass along the 30% increase to my employees am I reducing their benefits? Seems to me by paying the same amount for their healthcare I would be giving the same benefit.

That still leaves me with a decision on the new nondiscrimination laws and my key employees. My understanding is that it applies to all employers no matter how many you employ. If I provide health insurance for one spouse or child I am required to offer it for every spouse and child. If I'm wrong PLEASE correct me. I could get around it by increasing their pay to cover them but then I would have to pay payroll tax and WC on the increased pay on top of the 30% increase. Again, there's just not enough money.
 
Originally posted by badselectioncommittee:

Originally posted by BringBackBonner:
I have seen 10-15% increases in premiums for no increase in coverage levels this year at the small businesses that I work with.
Posted from Rivals Mobile
My premiums went up almost 30%. Of course I could take the easy way out and blame Obama but that would be intellectually dishonest since it hasnt even been implemented yet. It was explained by my broker that Half was due to cost experience adjustments and half due to employee demographics. I have a feeling that some insurance companies are using Obamacare as an excuse to jack up rates. I will use the exchange to compare rates and switch if cheaper than BCBS. This is one of the ACA's benefits to small businesses.

Congrats, though, to the OP for using Obamacare to reduce employee benefits, as it wont even affect him since he has less than 50 employees.
There are a lot of factors driving up the cost of health insurance, many of which started long before Obamacare was even part of the vernacular, but increases this year almost certainly include some amount of actuarial projected cost increases due to the requirement to cover pre-existing conditions. Now, on the other hand, if profit margins for insurers spike this year, your theory about using ACA as a simple cover for price gouging could be correct.
 
You cannot increase taxes and regulations on something without causing the price to rise, if that something is already rising in cost it will rise in cost faster. This is simple economic law. Even if you delay the implementation companies are going to compensate for future increases in operations cost.

What I typed above is 100% fact and unavoidable. We may become insulting when you try and tell us the sky is phugging orange, thanks.
 
RFN,
My apologies for my "prickish" response as I would probably do the same thing as you did. I was somewhat tweeking you as is customary on this site.

You seem like a responsible business owner and are correct, paying 100% of employee and family medical premiums is extremely rare and quite frankly not feasible in today's business environment. I dont cover my employee's family at all. Having the exchange as an option for non covered family members should hopefully lessen the blow to your employees. If it were me, however, I would pass the cost increase on to the employees but keep the family coverage. They should understand.

As far as the non discrimination rules, I wasn't aware of that but it makes sense as these benifits are not taxable to employees but are deductible by employers. This is no different than the 401k rules. Bottom line, I think you are doing the right thing but would not place the blame on the ACA for your premiums going up 30%.
 
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