Overwhelming Insurance Costs Forces Employers to Switch Plans and Delay Hiring
Insurers have been increasing insurance premiums each year for the past few years to the point where it has become a burden to employers and employees. It is getting too expensive; jumping from 50% to 74% in the span of one year for one small business located in New York City. The 2011 rates will be the highest increase since 2003, at about 8.7%. The sudden increase in rates will protect insurance companies from the slowed profits they have been experiencing. Health insurance rate increases are predicted to reduce by 2014. By that time, small businesses and the self employed can acquire insurance. Until then, expect unfavorable rate increases.
The increase is unfair for those who are self employed and for small businesses. Large employers are better prepared for this insurance hike because they self insure. Small businesses are dependent on insurance companies. Premiums are increasing quicker than self insurance. Small businesses may file few claims yet they pay the price for other businesses who file many claims. These small businesses must put the burden on their employees or change insurance companies. Many small firms are below the state’s community rating system; small businesses with 50 or less employees in certain locations must pay the same rate. To mitigate the effect of rising rates, small businesses had to halt hiring and expanding, which does not help the city’s unemployment crisis.
If your located in Manhattan, Brooklyn, the Bronx, Staten Island, Queens, Westchester, Hudson, or Union County, the NYC Health Insurance Link will be useful to assist the self employed and small businesses evaluate alternate health plans. The Consumer Guide to Health Insurers includes extensive information about insurance products in New York, testimonials, complaints, and ranks insurers.
Insurers have been increasing insurance premiums each year for the past few years to the point where it has become a burden to employers and employees. It is getting too expensive; jumping from 50% to 74% in the span of one year for one small business located in New York City. The 2011 rates will be the highest increase since 2003, at about 8.7%. The sudden increase in rates will protect insurance companies from the slowed profits they have been experiencing. Health insurance rate increases are predicted to reduce by 2014. By that time, small businesses and the self employed can acquire insurance. Until then, expect unfavorable rate increases.
The increase is unfair for those who are self employed and for small businesses. Large employers are better prepared for this insurance hike because they self insure. Small businesses are dependent on insurance companies. Premiums are increasing quicker than self insurance. Small businesses may file few claims yet they pay the price for other businesses who file many claims. These small businesses must put the burden on their employees or change insurance companies. Many small firms are below the state’s community rating system; small businesses with 50 or less employees in certain locations must pay the same rate. To mitigate the effect of rising rates, small businesses had to halt hiring and expanding, which does not help the city’s unemployment crisis.
If your located in Manhattan, Brooklyn, the Bronx, Staten Island, Queens, Westchester, Hudson, or Union County, the NYC Health Insurance Link will be useful to assist the self employed and small businesses evaluate alternate health plans. The Consumer Guide to Health Insurers includes extensive information about insurance products in New York, testimonials, complaints, and ranks insurers.
Some interesting, or more like pretty upsetting statistics:
New York City health care expenses per employee: 2007- $7,582; 2008- $8,245; 2009- $8,810; 2010- $9,520; (predicted) 2011- $10,352