Small Business Health Insurance Current Rates, News & Information

Today’s News: Doctor’s Face Medicare Payout Cut, IRS Announces Health Insurance Tax Credit and Health Insurers Fight Regulations

Posted in Health Insurance , Medicare , Small Business Health Insurance

May 18th, 2010
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The health care industry has undergone a number of changes in the past few days. Doctors, health insurance companies and even the IRS are making or seeing drastic adjustments – let’s take a closer look.

Doctor’s Face another Medicare Payout Cut

In March, we reported that doctors were ditching their patients because their Medicare payments had been cut by 21 percent. Now it appears that doctors could face yet another 21 percent payment cut in Medicare reimbursement on June 1. In 1997, a Medicare formula was established that said rates should be cut every year, but Congress has blocked the cut seven out of eight years.

In order to block the cut for June, Congress would need to vote within the next two weeks. (CNNMoney.com)

IRS Announces Health Insurance Tax Credit

As a part of the health care overhaul law, the IRS is planning to announce the ground rules for small firms that want to claim the new federal tax for health insurance. The tax credit would cover up to 35 percent of the premiums that some small businesses pay on behalf of their workers. However, the credit will only be applied toward dental and vision benefits – not medical.

In the meantime, small business lobbying groups have filed a lawsuit against the law, stating Congress doesn’t have authority to mandate coverage. (Associated Press)

Health Insurers Fight Regulations

Health insurance companies are lobbying to fight what they consider to be strict regulation of premiums and profits under health care reform. The companies’ lobbyists are trying to shape regulations so that there are better definitions of what “unreasonable” premium increases are – and to avoid having to pay consumers rebates if the companies do not spend enough on patient care.

Senator John D. Rockefeller IV (D-WV) said companies now want to control how laws are implemented since they couldn’t control health care reform’s passage. (New York Times)

How to: Buy Health Insurance for Your Small Business

Posted in Health Insurance , Small Business Health Insurance

October 4th, 2009
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If you own a small business, you may be wondering whether or not to buy health insurance for your employees. It is expensive, and complicated. Purchasing health insurance – unlike, say, life insurance or auto insurance – is very complicated, and laws concerning the transaction will vary from state to state.

Workmen’s Comp

Small businesses, like any sized business, must participate in workmen’s compensation programs, more commonly referred to as “workmen’s comp.” This covers a worker’s injuries while on the job. Almost all states require that businesses which employ one person – other than the boss – participate in workmen’s comp. As for health insurance, it is generally optional, and something that a boss will want to offer his or her workers in order to be more competitive in the workforce, and retain employee loyalty.

Checking Local Laws

Since the laws concerning small businesses and health insurance vary so much from state to state, it’s a good idea to seek out other small business owners and determine how they’ve come to offer their employees this highly valued benefit. You may find that your business qualifies to participate in what’s known as a “purchasing association.” Purchasing associations allow small businesses to join together as a single, much larger professional entity, and thus bargain with insurance companies from a stronger footing. The more employees are covered, the more muscle a business owner will have when it comes to getting quality health care.

Health insurance rates and health care reform is on everyone’s mind these days, and major changes in the way Americans get their health care could be coming down the road soon. These changes could affect us all, but most specifically small business owners. Staying informed about all the latest changes and debates could help small business owners prepare themselves.

FAQ: Should Small Businesses Purchase Health Insurance?

Posted in Health Insurance , Small Business Health Insurance

October 3rd, 2009
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If you’re a small business owner, you’re probably wondering if you should buy health insurance for your employees.

Employee Insurance Plans

Small businesses should buy health insurance for their employees if they want to be more competitive when it comes to hiring and retaining employees, and building their loyalty. If you have health insurance to offer a potential worker, he or she is going to be quite tempted – and if they’re interviewing with other businesses which don’t offer attractive health insurance plans, they’re going to look upon your offer more favorably. In today’s society, everyone with health insurance feels extremely lucky to have it. The horror stories of people getting sick or injured without health insurance are enough to scare anyone.

Help for Small Businesses

Statistically, the smaller the business, the less likely it will be to offer health insurance to its employees. It’s simply a fact that health insurance, unlike life insurance or auto insurance, costs a small fortune, and so small business owners will be less able to absorb the cost of their employees’ health insurance. There are, however, many different programs available on a state-by-state basis that seek to help small business owners afford health insurance. One such law that is in the works would allow small businesses to band together across state lines and form bigger numbers from which to negotiate with the insurance companies on a stronger footing. Employers can also think about getting health insurance for their employees in conjunction with Health Savings Accounts (HSAs) and high-deductible plans, which seek to help people with minimal, bare-bones health insurance.

Small businesses need to think long and hard about whether to offer health care to their employees. It makes for a very grateful workforce, but it takes a big piece out of the company’s profit margin.

Health Insurance Dreams May Become a Reality for Unemployed in California

Posted in Health Insurance , Save on Health Insurance , Small Business Health Insurance

April 20th, 2009
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Small business workers in California may finally realize their dream of health insurance assistance in the coming weeks. If Assembly Bill 23 which was recently approved and passed on to Senate is signed into law, thousands more laid-off workers will benefit from the federal law that provides assistance to COBRA recipients.

The Basics of Assembly Bill 23

Assembly Bill 23 (also known as AB 23) is a bill setting out to provide health insurance assistance to individuals who have been laid off from small businesses. Recently, the federal government offered to pay 65% of each laid-off workers COBRA health insurance premium if they’ve worked for a company employing 20 or more workers. If AB 23 is signed into law, California workers laid off from companies with between two and 19 employees will also be offered this assistance.

Requirements for Receiving Health Insurance Benefits

If you were laid off from a company in the state of California, while the size of the business will no longer be relevant under AB 23, there are other qualifiers to consider:

• You must have been laid off after September 1, 2008. If you were laid off before September 1, 2008, were fired, or quit on your own, you will not be eligible for benefits.
• Income below $145,000 is required. Your income must fall under $145,000, if you’re single. And if you’re combining your incomes, it must fall under $290,000.
• You must have retained benefits. If you extended your health insurance benefits after being let go, you qualify for this temporary assistance.

If you qualify for assistance, the deadline to apply is December 31, 2009. After being approved, you will receive assistance for nine months, during which time you will be responsible for 35% of your health insurance bill.

For those of you who are looking for the best insurance rates available in California, fill out our health insurance form to see the best health insurance rate quotes for your area. It’s fast, secure, and free!

Health Insurance Premiums Rising Around the Country

Posted in Health Insurance , Small Business Health Insurance

March 6th, 2009
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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.

Business Health Insurance

Posted in HMO , Health Insurance , Managed Care Insurance , PPO , Small Business Health Insurance

January 16th, 2009
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Every business needs health insurance to protect its employees against unnecessary medical costs. The productivity and strength of any business relies on the health of its employees. There are different choices available for business owners to ensure their employees receive the best medical coverage. In most states, there is no employee minimum so even the smallest of businesses have health insurance coverage options.

Available Types of Business Health Insurance

Whether you are a large and established business owner or you are just starting to grow your business, there are many private insurance options available for you and your employees. The most common business health insurance is a group policy. The employer buys a group health insurance package that would make all its employees eligible to join. This type of business health insurance offers the most savings to its employees, although availability varies from state to state.

Another option available in some states is a High Risk Medical Pool. This can provide lower cost business health insurance. This type of business health insurance is beneficial for people or companies that cannot find health insurance coverage through other channels, such as a group plan. It is a state-sponsored program and eligibility for coverage varies. It is important to contact your state health insurance commissions to investigate all available options for your business health insurance needs.

The Protection of Business Health Insurance

Even in the smallest business environment, it is vital that the health of employees remains well. The success of any business starts with its employees. Also, most employees will choose to work for businesses that offer health insurance packages. This desirability will set any business above the rest. When your employees are comfortable in the knowledge that their business health insurance needs are covered, they can be free to work to the best of their abilities. It doesnt take much research to find the type of business health insurance that is right for your company, large or small. Most importantly, a business health insurance plan may protect you and your employees from the risk of unmanageable medical costs that could come up unexpectedly.