Young, Healthy Employees? New Healthcare Law Sticks It To You
Sarah E. Needleman writes in the WSJ that the younger and healthier a small business's employees, the greater its chances of facing a big spike in its health-insurance premiums next year:
That is because the Affordable Care Act's impact on small employers will split largely on generational and industry lines, putting entrepreneurs like Eileen Hasson, owner of a technology-services firm with mostly male employees in their 20s and 30s, at a disadvantage.Starting in January, insurers will no longer be able to set premiums for small-group plans--which apply to employers with fewer than 50 or 100 employees, depending on the state--based on a firm's industry or the health or gender of its staff. Insurers will still be able to take into account the age of a firm's workers, though to a lesser extent, and whether or not those people use tobacco.
The result: the cost of health care will be more evenly spread among small businesses, as employers with mostly young and healthy workers pick up the costs of firms that comprise the opposite. The rebalancing will drive up premiums for some companies in industries with lots of young, healthy workers, such as technology, while moderating rate increases for firms with older and sicker workers, and in higher-risk industries such as industrial manufacturing.
Someone posted a harumph!-type comment about "inaccuracies" in the piece about the amount younger workers will be forced to pay, with subsidies from the Federal government reducing an individual's out-of-pocket costs:
WSJ commenter Charleen Larson bats cleanup:
"there will be significant subsidies from the Federal government to reduce the cost of purchasing health insurance."Oh.
Well, that's okay then.
Because as we all know, the Federal government gets its funds from the Cash Fairy.







Well, I believe that a business will choose the rational choice. Quit the insurance as part of compensation. Give employees a slight raise to compensate them, and turn them loose on the exchanges.
The employee is required to have insurance; the employer of small business is not required to provide it.
Mike43 at June 23, 2013 10:39 PM
Or the employer will go with the Preventive and Hospital Care Health Insurance Plans which will screw the employee.
Jim P. at June 24, 2013 4:03 AM
None of this is a problem when the job is outsourced to India or China. Maybe somebody forgot to tell our government which side it's on.
MarkD at June 24, 2013 5:26 AM
Give employees a slight raise to compensate them, and turn them loose on the exchanges.
The exchanges that don't currently exist? those exchanges?
I R A Darth Aggie at June 24, 2013 6:12 AM
Aggie, those are the exchanges that, when they do exist, will contain one plan: the government-approved plan. Your benefits will depend on whether or not you belong to a politically powerful group.
It's time to call all this what is is:
Sabotage.
Cousin Dave at June 24, 2013 7:09 AM
The thing about this that is killing my workplace right now is considering 30 hours a week full time. We're going to have to start cutting some people's hours, because we can't afford to pay their insurance. So, I personally know 14 people who are really not happy right now...
Daghain at June 24, 2013 5:11 PM
Actually they will have two plans. One will be for single people with no dependents. It will cost about 75% more than they're paying and won't have that much good stuff like 10% deductibles. They'll have 25% deductibles. If you want to get to the 10% it will cost twice as much.
Then they'll have the dependent plans. They will only cost 25% than what a single person has to pay but will cover at 90%.
Jim P. at June 24, 2013 5:20 PM
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