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Monday, March 1, 2010  

Small Business Health Insurance Prices on the Rise

There's been a lot of press out there lately about Anthem raising premiums for California individual health insurance, but what a lot of people don't realize is that small business health insurance is in the same boat, often to the detriment of employers, their employees, and the economy in general.

This year, many business owners will struggle to pay up to 30% more for their small business health insurance. This means slimmer margins, it means less product, and in some cases, it means that employers will have to choose between providing for their employees and keeping their doors open.

Because smaller businesses operate with fewer employees, they are subject to many of the high premiums that plague the individual insurance market. According to the Telegram's article on health care, larger corporations can pay as much as 76% less per employee because the larger pool of employees spreads the risk.

But, as many employers argue, the real force behind America's economy is the small business. More hiring, more production, and more innovation comes out of the small business market than anywhere else in this country.

Legislators are taking complaints seriously, and struggling to keep tabs on what insurance companies are charging for small business health insurance. However, it's hard to control the costs or the market for coverage.

Insurance companies suggest that the rising costs of health care are behind the higher premiums, as well as a struggling economy.

However, until small businesses get some relief from these insurance premiums, the economy isn't going to get better any time soon.



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