     |
      |
  Edward G. Rendell, Governor |
     
 |
Rx for Small Business Pennsylvania Access to Basic Care will make affordable basic health insurance more available to eligible small businesses and will offer grant opportunities for small businesses who provide insurance for their employees. PA ABC would also allow businesses that already provide insurance to enroll eligible individuals who may have previously declined insurance because they could not afford the employee contribution by subsidizing the employee premium. PA ABC offers relief to small businesses who are already offering insurance for their employees through CARE grants. These grants serve to relieve the burden on businesses who offer insurance by providing up to 25% of the cost of health coverage as long as that employer meets the eligibility requirements for PA ABC and carries a tax liability. Prescription for Pennsylvania also includes a series of insurance reforms to help regulate and stabilize premiums for small business. The growth and volatility in premium costs in Pennsylvania for small employers is a driving factor and primary reason for the erosion of employer based coverage in Pennsylvania. What does Rx do for Small Businesses?
What can you do to help? Or share your health insurance story with us, click here for more information. News 5/21/2008 Small Business Owners Speak Out Patrick S. Au Patrick is the owner and CEO of Pittsburgh Engineering Consultants, in Pittsburgh. For his 12 employees, health insurance costs are second only to payroll in his overhead budget. Currently he is with a Blues plan, but feels he pays an exorbitant amount because his small group lacks the ability to negotiate that larger companies’ have. He testified that he feels his group is “discriminated against” because of the medical and age profile of the group and that even health savings accounts were priced too high to be affordable. Medical underwriting impacts the quotes that he receives every time his group searches for insurance. Marilyn Brogan Marilyn is the office manager at CW Schultz Plumbing and Heating in Wilkes-Barre. Marilyn testified that when one employee at her business was diagnosed with colon cancer and also underwent heart surgery the company’s health insurer would not cover all his expenses and he had to go to the Commission of Economic Opportunity for help. As a result of the health insurance expenses for that employee, costs went up 15 percent for the company. She also said the average age of her employees is 45 so they are being hit particularly hard by rising premiums. Jim Evans Jim testified on behalf of Mountain Productions in Wilkes-Barre. Mr. Evans struggles to afford rising health insurance costs for his employees and has had to consistently adjust his coverage plans. Although he has a relatively young work force, he believes that tighter controls need to be made on insurance companies, especially in more rate review and risk spreading. The company formerly paid 100 percent of its employees' health insurance. Jim said that five years ago the cost became so astronomical that 65 of his full-time employees were asked to contribute to their health insurance. Four years ago, the company spent $102,000 on health insurance costs, last year that amount rose to $155,000. Jim testified that in the same time period an average family plan's cost increased from $620 to $786, leading several employees to take the drastic measure of opting out. Jim said, "I wish Mountain Productions could raise our prices, without any argument, as fast as the health insurance industry." Regina Heilman Knecht Regina is the office manager of John F. Scanlan, Inc., a family owned business near Wilkes-Barre. She testified that costs have quadrupled over the last few years to cover the business’s 38 employees, forcing her to begin to expand her employees’ expected contribution. Regina is very concerned that she continuously has to decrease what is being covered to keep benefits affordable. Regina’s workforce is older and more specialized. She testified that commercial insurers gave her very expensive quotes that she attributes to the claims experience of her group. In 1991, the company paid $144, 000 for health insurance coverage, in 2006, the company paid $267,000. Char Magaro Char is a restaurant owner in Harrisburg. The restaurant has 14 full-time employees, but she only offers health insurance to her managers, however she pays the entire price. Her rates go up every year: one year she saw almost a 30% hike in her health insurance premiums. She truly believes that healthcare is both a moral and financial issue and would really prefer to be able to cover all of her employees. Char’s testimony demonstrated the difficulties many in the service industry face, especially the difficulties to keeping good employees because she cannot offer health insurance to all her employees. Elaine Oglesby Elaine testified on behalf of Elaine Oglesbly and Associates. Elaine testified that she is an individual contractor, but has had to take a job as a legal secretary in order to have health insurance with a group plan. She said she is upset that she is not able to make a go of her business. Elaine has diabetes and high blood pressure and with these health conditions, the cost of individual health insurance; even through her Chamber of Commerce plan, was too high. Matt Smith Matt is the president of David A. Smith Printing, in Harrisburg, he is the second generation operator of the printing business which has been in Harrisburg since the late 1960s. He has 36 full-time employees to whom his company does offer a variety of health benefit plan options, with a fixed employer contribution. He testified that they also use a medical expense reimbursement pool to offset the cost of employees out of pocket expenses. They spend $50,000 and his proposed renewal rate increase for next year is approximately 28%. Matt testified at his frustration that to keep insurance affordable, his company has been forced to shift costs on to their employees. Ed Stancheck Ed is the human resources director of Solid Cactus near Wilkes-Barre. Ed testified that his web design company of 150 employees has been seeing 15-20 percent increases each year. His company has found it very difficult to keep the same good coverage for their employees from year to year and that he believes medical underwriting has added to the inconsistency and unpredictability of the rates. Walter Strathy Walter is the owner of Emerson Resources in Norristown, a professional pharmaceutical services business which competes with companies like Merck and Glaxo. As a small business in his industry, he must offer competitive benefit packages to recruit and retain the top talent. Since 2002, his costs have risen over 60% and health care is 6% of his total company expenses and 10% of employee compensation. In 2006, his healthcare costs outpaced profits. Mr. Strathy testified that it is his belief that community rating will lead to a greater good for all, he understands the medical underwriting issue and sees it as a problem for business in the long run. Brian Vnuk: Testified on behalf of Fleet Decal and Graphics in Plymouth. He said the costs to insure 23 people at his business are getting out of control. Since one employee has multiple sclerosis, health insurance rates increased for the entire company. As a small business, he finds it harder and harder to provide the same good benefits package he provided in the past. Brian used to be able to provide benefits at no cost to employees. Every renewal, he shops around and is shocked by the way the rates have increased, far out pacing wages. Tim Wilkins Tim is the president of PA Insulating Glass in Lewistown. The company has 16 employees and can only afford to provide an insurance plan for its few management team members and not his hourly employees. Even with paying premiums for just the management team, the health costs are one of the company’s largest expenses at more than $20,000 annually. Tim testified that he is very worried about losing valued employees who leave because of a lack of health insurance because his small company simply cannot compete with larger companies who can offer health insurance to all their employees.
|
||
| Copyright © Commonwealth of Pennsylvania |