Health Insurance Forum

Chamber offers primer on changes to health insurance

by mahir on 31/05/10 at 8:51 am

ZANESVILLE — Overhauling the health care system will be a monumental task over the next several years. But there are changes this year that will begin affecting businesses. Local small business owners and concerned residents took part in a Chamber of Commerce-sponsored presentation — “National Health Care Reform: What Does This Mean for my Business?” — Thursday morning at John McIntire Library. They were there to learn about the pros and cons of the new systems being put in place.

Jim Balder-son, owner/operator of the local Lee’s Famous Recipe Chicken franchise, said the changes definitely will affect business operations. “I used to offer Group health insurance, but I don’t offer it anymore because it’s too expensive,” he said, noting he has 15 employees.
Program presenter Carrie Haughawout, director of health care and small business with the Ohio Chamber of Commerce, said there are tax credits available this year for businesses employing 10 or fewer employees that offer health insurance to those employees and reduced credits for those with as many as 25 employees.

But those like balder son are concerned about the penalties for those who don’t carry health insurance, since everyone will be required to be covered.Another concern raised could come in the form of companies being forced to increase the price of consumer goods and services to offset the rising insurance costs, Houghawout said, noting insurance company costs could top $2 billion in 2011 and rise to as much as $7 billion to $8 billion. They either raise the cost of their product, or go out of business, she said. Another is whether there is any incentive for employers to cover their employees, if they are penalized more for trying to than not, Donna Maley brought up. Maley, who works at the Colony Square Mall Candy Craze store, was responding to a point made by Haughawout Under health reform rules in effect after 2014, businesses with 50 or more employees could be subject to two different penalties depending on whether they offer health insurance or pay for less than 60 percent of an employee’s plan. If a company with 50 employees doesn’t offer a health plan to its employees and dependents, and also has at least one employee receiving a tax credit to help pay for their own insurance, the company would be subject to an annual penalty of $2,000 per employee minus the first 30 employees. In this example, that amounts to a $40,000 fine.