Small businesses desperately looking for ways to reduce operating costs
are canceling their employer group health plans at a rate not seen in more
than twenty years, creating a spike in individual and
family health insurance enrollments.
"Insurance companies offering
individual medical coverage cannot hire and train new employees fast
enough to keep up with the recent spike in private health insurance
enrollments", said Tom Carolan, Director of Client Services for
BestHealthcareRates.com, a health insurance information website based in
Arroyo Grande, California. Carolan continued, "the plight of the
individual medical coverage market is the focus of much media attention,
but it is vitally important to economic recovery that small businesses get
help".
As the nation is engaged in overall health care reform, a focus on making
sure small businesses are able to receive
affordable health coverage is being called a top priority at a joint
press conference with the National Federation of Independent Business and
(NFIB) and America's Health Insurance Plans (AHIP).
On the accessibility of
affordable medical insurance coverage, Dan Danner, the CEO and president
of the NFIB, stated his thoughts on the importance of this matter: "We must
work together to pursue creative, private market solutions to what has
become an unsustainable problem for small businesses - increasing small
group health insurance costs." He continued by adding, "It is imperative
that insurance market reform - specifically in the individual health and
small group health insurance markets - leads to greater access to larger
pools, increased portability and competitive choices."
The AHIP conducted a nationwide tour of the United States to get opinions
and stories directly from the American people in regards to their
experiences with health care institutions. The people with whom they talked
to were also asked for their ideas for health care reform. During their
conference the AHIIP released their findings to the joint committee.
In 2008:
- Small group health insurance premiums averaged $913 per
month for
family medical plans and $346 for
individual medical coverage.
- Health
insurance premiums ranged from as low as $198 a month in
Washington to $504 a month in Alaska.
- Companies with more employees generally paid less than
companies with fewer employees.
- Forty-one percent of businesses had an HMO plan, 50% had
a PPO and only 7% were enrolled in heath savings plans in
2008.
AHIP released a statement highlighting the specific needs and
obstacles faced by small businesses, calling policymakers'
attention to difficulties faced by small businesses. The
organization recently launched the "Campaign for an American
Solution", a new national grassroots and educational initiative
to build support for workable health care reform based on core
principles shared by the American people: coverage,
affordability, quality, value, choice and portability.
In a letter to key Senators last week, AHIP and the Blue Cross
and Blue Shield Association offered to curb its practice of
charging higher premiums to people with a history of medical
problems. The offer from AHIP and the Blue Cross and Blue Shield
Association is a potentially significant shift in the debate
over overhauling the nation's health care system to rein in
costs and cover an estimated 48 million uninsured people. In the
letter, the two insurance industry groups said their members are
willing to "phase out the practice of varying premiums based on
health status in the individual and
family health insurance markets" if all Americans are
required to get health insurance coverage.
"The offer here is to transition away from risk rating, which is
one of the things that makes life hell for real people," said
health economist Len Nichols of the New America Foundation
public policy center. "They have never in their history offered
to give up risk rating."
"This letter demonstrates that insurance companies are open to
major insurance reform and are even willing to accept broad
consumer protections," said Sen. Jeff Bingaman, D-N.M., a
moderate who could help bridge differences on a health care
overhaul. "It represents a major shift from where the industry
was in the 1990s during the last major health care debate."
AHIP has published its proposal for health care reform to make
medical insurance
affordable, and they state: The U.S. could reduce total
health care spending and improve the quality of patient care if
the plan proposed today by America's Health Insurance Plans
(AHIP) was implemented. PricewaterhouseCoopers reviewed AHIP's
proposals and estimates, and concluded that if these proposals
are fully implemented, the nation's total health care
expenditures could be $145 billion lower than currently
projected by the year 2015.
About BestHealthcareRates.com
Since 2001 BestHealthcareRates.com has helped thousands of families and businesses to find the most benefits for their insurance budget. The company is committed to exceptional service and strives to achieve 100% customer satisfaction and Affordable Health Insurance for all. For more information visit www.BestHealthcareRates.com, email
TomC@BestHealthcareRates.com or call Tom Carolan Director of Client Services at 1-877-812-5111.