Small Employer Plans Now In Jeopardy

I was speaking today to a person who administers the health insurance coverage for a small employer, a company with about 25 employees.  The business had just gotten a quote for its insurance coverage for 2014.  The administrator was shocked to learn that there no longer was a fixed price for individuals in the plan.  Instead of that, coverage for each person in the plan was priced specifically for that person based upon age, county of residence, and smoking history.  The overall premium for the plans was way up, and the cost for some individuals was staggeringly high.  The company was advised that, in order to comply with the law, it had to provide a fixed percentage of the total premium and let the employees pay the rest.

Think what that means.  For millions of people who work in businesses with less than 50 employees across America, they are likely to get hit with paying major percentages of very high health insurance rates.  For a middle class worker in his or her fifties, the premiums will be extremely high and the monthly cost will be a major burden.  Remember, since these people are being offered health insurance at work, they will not qualify for any subsidy even were they to go on the Obamacare exchanges (when they finally work).  Millions of older workers in small businesses are going to get hit with major expenses for health insurance over the course of 2014 as the new plans kick in.

This is another aspect of the Obamacare disaster.