the Air Vent

Because the world needs another opinion

Health Insurance – Preliminary

Posted by Jeff Id on November 4, 2013

Another 17% annual increase, bringing the total for our 40 people to approximately 35% over the past 3 years and we will receive a new health plan.  The reason I don’t have exact numbers is because we got pushed off our plan last year also and changed companies.

We currently pay 100% of our employee coverage and it is a premium level plan with coverage for most anything.   I will learn more details Wednesday.




14 Responses to “Health Insurance – Preliminary”

  1. From your statistics, at least you will fall below the Obamacare threshold.

    • Jeff Id said

      The magnitude of the hit is that of second full professional salary taken from our profits this year by this government. If it continues, we could be a 5 person company with only foreign employees.

      • Scratch that! Sorry, I am slow on the uptake. I was going to say that you fall below the Obamacare mandate level. However you also stated you provide full insurance for your employees as a benefit. So even though you are not MANDATED to, you do so, and the requirements of Obamacare are what is increasing your costs so much.

        Many others like you have just dropped it, and dropped the people into the exchanges. So kudos to you. And sorry I was slow to catch on.

        • Jeff Id said

          We are also growing so fast that I expect to cross the 50 person mandate limit next spring. Because of that, we operate as though we have already crossed it. We may play the part-time game or take other options to keep our federally recognized payroll to the correct levels but I don’t want to do either of those.

          We want to give people decent jobs and pay them. The feds are making it very tough to make things here rather than China though. A phone call to one of our overseas vendors would save us a shocking amount of money and hassle at this point but I’m stubborn yet.

          Libs see us as just another big greedy business though.

  2. j ferguson said

    I’m guessing that it is no longer legal for you to self insure say the first $4k in an individual’s medical costs to make what you buy more of a catastrophe coverage than a very expensive way for someone to have all of his medical expenses paid by the company. obviously, even if it is legal to do this, it’s still tricky to administer and whether it makes sense depends a lot on what the insurance companies will offer. in 93, our scheme was employee pays first $1,200 IIRC, then we (the company) pick up anything between $1,200 and $4,000 where insurance company takes care of the rest. This reduced cost of insurance to company a whole lot. It was such a good idea that the idiots in Washington have probably outlawed it.

    • Jeff Id said

      I think that is still legal – no proof ’till Wednesday though. We are considering it as a cost reduction. Currently we allow a 1K per person deductible and have two employees who prefer their zero deductibles from their spouses even though they both pay $300+ per month for it. We cover spouses and families at our cost also. Even when explained some people don’t get basic math.

      The increases are so big this time, we may take that path. I’m more concerned as to what coverages we are losing to maintain only a 17 percent increase. The agent hasn’t told us what policy he is recommending yet. If it limits access to doctors or hospitals unreasonably, I’m not paying.

    • j ferguson said

      The thing that made me suppose this sort of thing might no longer be legal was an article I read this weekend which was attempting to show that the policies which were being canceled (not renewed) were lousy. The example was one exactly like ones we had between retirement and our descent into medicare. Blue Cross sold them as “catastrophe” health insurance. SWMBO’s cost was $135/month and for some reason mine was $75?? They had very high deductibles but once the $4,500 had been spent annually, they covered everything beyond. From the discussion, I was able to pick up that the person who had been canceled had liked the low premium and was assuming that there would not be $4,500 of trouble every year. The reporter didn’t “get” it and went on and on about how the government had outlawed this sort of policy because it didn’t cover doctor visits and the deductible was so devastating. My take is that if the reporter didn’t “get” it, it was perfectly possible that some goof-ball committee didn’t understand it either.

      And I’d like to add to the other comments, that it’s wonderful you can share some time with us.

      I’ll even admit that you were right about Obama and I was wrong. He is not highly intelligent. I’m not sure how you divined it, but my mistake was assuming his particularly effective and well- organized 2008 campaign was his doing. After savoring the mechanics of the current fiasco, and learning that some of the heavies in his past had begged him to put the web-site creation in the hands of people experienced in projects of this size and complexity, and having seen him let the usual idiots loose on it, I can only conclude that he was part of the show in 2008 but definitely not the author. And you knew from the start.

      • Jeff Id said

        Kind words sir. Predicting the future is never a safe bet but I wonder if we won’t here a bunch of talk about his disinterest and non-engagement in serious matters from those who work around him. Well after he leaves office of course. I also suspect some complaints of his anger and need to take revenge on those who he sees as political enemies in this country.

    • hswiseman said

      We had that plan and we saved a bundle and our employees loved it. While not technically illegal, United Health has dropped their HRA for small companies, as they like all the other insurers want to drive small business into the risk pool.

  3. page488 said

    Good to have you back, Jeff. Can’t wait to hear more!

  4. Brian H said

    The foul fowl are now coming home to roost. Enjoy.


  5. George O'Har said

    Glad you’re back. You were missed!

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