Health Insurance Premiums Rising Around the Country

Posted in Health Insurance , Small Business Health Insurance

March 6th, 2009

As the recession sets in nationwide, employees are suffering in many ways including seeing an increase in their health insurance premiums. Unfortunately, much of the weight of the premium increase falls into the laps of the businesses that have to cover a large portion per employee.

Some companies are responding to the increases by eliminating coverage altogether, while others are deciding to shift the responsibility by increasing employee premiums. Neither option is sitting well with employees in need of coverage.

Hels Kitchen in Northbrook, Illinois

The owner of Hels Kitchen Catering in Northbrook, Illinois says he feels an enormous sense of guilt as he has been forced to reduce the number of employees he provides health insurance for. This comes after learning that his premiums had doubled to $457 a month per employee over the last 7 years. Being a small-business owner, the cost was too overwhelming, and as a result, he decided to only provide coverage for 13 of his 25 full-time employees and yet he still is dedicating 9.4% of his payroll to health insurance.

Problems in Corpus Christi

As employees face rising premiums around the country, union representatives of the police and fire departments in Corpus Christi, Texas faced their own health care coverage problems. In an attempt to beef up the citys reserve fund, council members argued that an 18% increase in coverage premiums was necessary. However, employees of the city argued back that the increase was unfairly affecting only firefighters and not police officers. By the end of the meeting, an agreement was reached that premiums wouldnt be increased yet. However, the hope is that if premiums in the city do have to be increased, they will affect all three of the citys organizations.

As companies and employees look for a resolution, President Obama has been working with Congress to pass health care reform. In addition, some small-business owners are hoping to become a part of a larger pool that can essentially slow down premium increases. These adjustments offer a glimmer of hope that health care insurance will improve. But with many companies still struggling to stay afloat, coverage is likely to continue being one of the first benefits to go.