Business owners voice their concerns to Senate committee about insurance costs
Three small businesses recently spoke to the Senate Health Subcommittee on Primary Health and Retirement Security concerning the affect that the Affordable Care Act is having on the cost of health insurance coverage. According to these businesses, the federal role is riddled with problems that are making coverage extremely expensive. The growing costs of insurance coverage is making it more difficult for companies to provide coverage to their employees.
It is less expensive to hire younger consumers due to their low insurance costs
Thomas Harte, owner of Landmark Benefits based in New Hampshire, told the committee that the federal law has made health insurance coverage more expensive for small businesses. Harte noted that the provisions of the law have made it significantly more attractive to hire young consumers, largely because they represent a lower insurance cost. For a single, 25-year-old employee, the average cost of coverage per month is $385, whereas a single, 60-year-old employee has an average insurance premium of $1,046. This is making it more difficult for businesses to hire those with more experience.
Business owners are finding their insurance options becoming more limited
Business owners have also noted that their choices are becoming more limited due to the growing cost of medical care and how this is affecting health insurance coverage. This is particularly stressful for businesses in states where companies have been required to abandon their old health care plans in order to purchase new plans that fully comply with all the provisions of the Affordable Care Act.
Some business owners are eager to see changes to the Affordable Care Act
For some business owners, the steep increase in insurance costs have come as a shock. For James Scott, owner of Applied Policy in Virginia, renewing his health care plan also came with a 40% increase in premiums. While many business owners support the Affordable Care Act, they also want to see some modest changes be made to the federal law in order to reduce the financial strain they are experiencing and ensure that employees can have the comprehensive health insurance coverage that they need.