From : Bhavini
Location : |
Question :
What is the best source to learn about insurance products? |
Reply :
K.Kerrigan: I would suggest visiting your State's insurance commissioner's website and specifically with respect to HSAs, visit www.HSAinsider.com. On the Durbin health plan, as an individual that advocates for free enterprise, I always prefer the private market as opposed to government-run schemes. On that note, thank you all for taking part in today's web chat which will be archived on the SBA's website. |
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From : Eric George
Location : Hartford , CT |
Question :
In terms of individual state healthcare mandates, which have you found to be the most costly and the biggest healthcare cost drivers? |
Reply :
JP:This is last question for me! Please visit www.cahi.org for our health care mandate report. The biggest cost drivers -- it is clearly overutilization. Thanks everyone for taking part. |
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From : John Arensmeyer
Location : Sausalito , CA |
Question :
What is your opinion of a national policy of health care pooling for small businesses, and specifically the current proposal in the U.S. Senate by Senators Lincoln and Durbin to facilitate pooling through the Office of Personnel Management and to provide tax credits to companies that provide health care to lower income workers. |
Reply :
JP: Unfortunately, I am not sure this proposal (Lincoln - Durbin) would work. Pooling like this on the state level has not worked, andf was a dister in kentucky. It is a high cost plan wtih an emolyer mandate which goes the wrong direction |
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From : Northwoods Construction
Location : , Idaho |
Question :
How safe are HSAs? Would you recommend them? Have all the bugs been worked out? |
Reply :
JP HSAs are very safe. They are only offered by licensed insurers and the account is managed by strong financial institutions. Karen: A good sign the bug have been worked out is that nearly 100 insurance companies are offering HSAs. Which demonstrates high demand and strong consumer satisfaction. |
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From : Charlene T. Wade
Location : Lanham , MD |
Question :
How can small businesses hold the line on increasing health care premiums? |
Reply :
Again look in to an HSA and read the previous answers |
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From : Melissa
Location : |
Question :
My friend was a victim of health insurance scams and lost everything, she had to file for bankruptcy and lost her small business, not to mentioned ended up $30K in debt because her medical services were never paid. I've been told the newly-passed AHP legislation will give MORE leeway to people who run faulty insurance networks and sell them through associations. As a small business owner myself, is this responsible? |
Reply :
K.Kerrigan: No doubt. There is fraud in every industry unfortunately. Small business owners are often the victims of such fraud. In my opinion, the AHP legislation at the Federal level will help curb fraud by providing new criminal penalties, higher solvency standards, and again ensure that only bonified associations offer these plans. |
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From : paul weiss
Location : dana point , ca |
Question :
how do we obtain health insurance |
Reply :
The best way is to contact a local insurance agent |
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From : Douglas Hoerz
Location : Milwaukee , WI |
Question :
What institutions can I use for HEalth savings plans? |
Reply :
Most banks and credit unions are maanging accounts -- but please watch the fees -- some banks have used HSAs as a new profit center. |
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From : Kristin Brown
Location : |
Question :
I've heard AHPs can lead to fraud. Is this true? |
Reply :
K.Kerrigan: With AHP legislation at the Federal level, only bonified trade or professional associations would be able to offer AHPs. In addition, the legislation includes tough solvency standards and other consumer protections that will help the states better enforce health insurance fraud. |
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From : nancy.hatch@advmanufacturing.com
Location : Lynchburg , VA |
Question :
Is there a way for many small businesses to get-together and combine insurance for better rates. |
Reply :
K.Kerrigan: Yes, that would be through group-buying or pools. At the state level, small business owners or groups can pool but on a nationwide basis, they cannot. That is why the small business community is supporting Association Health Plans to allow for that large group-buying opportunity. |
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From : Timothy Lee
Location : Newark , NJ |
Question :
What are some of the steps a small business owner can do to hold down health care premiums? |
Reply :
Look into lower cost plans -- especially the previous mentioned HSAs. Also look at defining your contribution to the group health insurance plan and allow your employees (if possible) to choose thier own health plans and pay any difference in premium. |
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From : Matt
Location : , Idaho |
Question :
Are there statistics showing decreased utilization for employer groups utilizing HSAs? |
Reply :
I have seen stats which indicate the cost of the underlying HSA insurance plan have actually DROPPED. This would indicate that insurance companies believe utilization and costs have dropped. |
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From : Anne Emrich
Location : Grand Rapids , MI |
Question :
Besides the escalating costs, what is the most common complaint about health care insurance among small businesses? |
Reply :
K.Kerrigan: No choice. There is a limited choice of plans with limited opportunities to design the type of plan small business owners and their employees want or need. The answer is more competition. |
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From : Jerry Chautin
Location : |
Question :
http://www.heraldtribune.com/apps/pbcs.dll/article?AID=/20050821/COLUMNIST07/508210582/-1/COLUMNIST The above is a link to my recent column on HSAs. In it I note that companies may discontinue their superior benefit coverages for less expensive HSA plans. Please speak to that. Thanks, Jerry Chautin Let's Talk Business columnist Herald-Tribune. Business Buzz columnist Cherokee Scout |
Reply :
JP: HSAs provide choice to individuals, and allow them to control their own expenses. We are paying a smaller percentage of our own health care since any time before the 1970's. As costs continue to rise, and the ability of managed care to control costs has also eroded, we need consumers to make better choices. |
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From : a mehta
Location : chicago , il |
Question :
How does consumer driven health plans affect small businesses and is there a trend towards CDHP for small businesses? |
Reply :
There is clearly a trend in that direction, and it will help get small businesses out of the business of micro-manging benefits. It empowers consumers to control their care -- not insurance companies. Karen: When people have control over their own resources and money to shop, the market becomes more price sensitive. Which will help bring down costs. The movement toward CDHP is a good one. |
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From : Niro Rasanayagam
Location : Lynchburg , VA |
Question :
What is the best way for a very small firm with five or fewer employees to get affordable employee health insurance? Additionally, can you recommend any sources of employee health insurance for small manufacturing firms such as machine shops? |
Reply :
K.Kerrigan: But as a small employer, you may be interested in the AHP legislation moving through Congress. Please refer to the hair salon owner's question previously answered for more on AHPs. Again, you may want to consider looking into HSAs. A great resource to turn to that will help you better explain and provide the details of HSAs is the HSA Coalition website: www.hsainsider.com. After going to the home page, you will see the listing of topics on the left hand side of the page. Click onto the Q&A section where you will find the typical questions. Also, download a copy of “HSA Road Rules, 3rd Edition” which provides all the details about HSAs. It is a great reference guide when employees have specific questions. Lastly, in the Q&A section, the “How HSAs Work” primer developed by the White House is posted – another solid resource. |
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From : Melanie Marshall
Location : Imperial Beach , California |
Question :
We are a small business woman owned Project Management company. We currently have only 1 (one) employee. I have searched web sites for health care but they seem to want a MINIMUM of 2 (two) people. I need to attract quality employees with benefits even if they are the first employee. What can I do or where can I get some assistance? |
Reply :
Group health insurance requires 2 people to join. However, as an owner (and worker) you can be counted as an employee. This would make you a 2 life group and eligible for group insurance. While the coverage is guarantee issue, do not terminate your existing plan until your new plan is effective. |
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From : David Duong
Location : San Diego , CA |
Question :
I have 7 employees including myself. Can you give me an affordable health care solution for me and my employees that won't cost me too much but will provide a decent amount of coverage? |
Reply :
JP Wieske:I would suggest that you look into an HSA option for your employees. You may help fund part or all of the deductible for the employees and the remainder can be funded through an employees payroll deduction and is tax deductible |
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From : Brent D. Green
Location : Springfield , MO |
Question :
Our health insurance costs skyrocketed after we started providing it about five years ago because after we started offering health insurance, our demographics changed. We went from a work force of young, healthy workers to a work force of older, sicker workers due to the fact we were offering and paying more to older, sicker workers by offering health insurance than we were to young, healthy workers (since it is more valuable for older workers to have health insurance because it costs more). Our work force is now very stable but older and sicker. How can an employer ever hope to get control of health insurance costs under this scenario since we cannot discriminate on account of age? (We have eight employees and our owners are not insured through the firm) |
Reply :
J.P Wieske: The issue could be one of equity, i.e. the cost of health insurance is more for the older worker therefore the older worker is in essence getting paid more. If your insurer allows companies to offer more than one insurance plan to the workers, you could define your contribution to be more equitable (i.e. $300 towards health insurance per month). Older and younger workers could then choose their plans based on what they want to pay, and you could allow them to pocket the difference. For example, a younger or older worker might select higher deductible plans and choose to pocket the difference (if you allowed them) or to put the difference in an H.S.A.. Others may like the security of a low-deductible plan, and they might be required to pay the cost difference. By defining your contribution and providing choice, workers make the decision on what they value most, and you control your contribution. If you can not find an insurer that allows you choice of benefit plans, you still can define your contribution, and let the employees pick (based on your contribution) the one plan they want. The choice, then, is in their hands. |
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From : Karla
Location : , michigan |
Question :
I've been a hairdresser for 16 years. I manager a salon franchise. I'm looking for a way to get reasonable health care plans for employees? I have posed this question to our regional office and the response I receive is "Because each salon is independandly owned, it is the responsibility of that owner". There are many wonderful stylists who work for our business, but health care plans are too costly for most of them. I have checked with the National Cosmetology Association, but the premiums are no better. Is there a group plan that stylists from anywhere can participate in? |
Reply :
K. Kerrigan: Small business supporters in the U.S. Congress, as well as business advocacy organizations are working to advance legislation right now to allow association groups -- like salon owners or broad-based business organizations – to use the power of their numbers to leverage better prices and more choices in offering health insurance plans. Association Health Plans (AHPs), as they are widely known, would allow for this pooling on a national or regional basis. The bill has passed the House multiple times, and awaits action by the U.S. Senate. As a small business advocate, I cannot pass up this opportunity to ask you to weigh in, contact your U.S. Senators and ask that they co-sponsor and support S. 406, the Small Business Health Fairness Act. Larger businesses and labor unions can operate under uniform federal guidelines to offer their employees and members more choice in plans (and at more affordable prices), why shouldn’t small businesses be able to do the same? I encourage you to visit www.ahpsnow.com for more information. |
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From : Linda Priest
Location : Helena , MT |
Question :
Another issue that needs to be addressed are 1-person business enterprises. I'm a woman-owned business with INDIVIDUAL health insurance because I only have part-time employees who work on an "as-needed" basis. These employees have insurance through their primary, full-time employers. My insurance rates on my health care plan are very high ($350/month for $5,000 deductible or my out-of-pocket costs of $7,500). Which brings up another issue . . the high deductible. With my $5,000 deductible, the insurance company pays 1/2 of my health care costs up to $7,500 and then they pay the full amount. For the past three years, I have met the $5,000 deductible. And, because I now have a "health issue," I cannot get a lower deductible or switch insurance companies. So, for the past three years, I've paid $4,200 a year for insurance coverage and at least $5,000 a year for health care . . . or, in other words, more than $27,200 over the past three years. How can small business owners without employees get insurance for themselves?? |
Reply :
J.P. Wieske: Sorry, about the costs you have had to incur and any health problems The insurance company knows what you know about your health condition. They can certainly see that you have met your deductible the last several years and that you would want to switch plans to save you money, but they also understand that it would cost them more. Unfortunately, that means it is unlikely any insurer would allow you to make the desired plan change. (Although some carriers might allow people to INCREASE their deductibles, if desired) Unfortunately, group insurance is meant for groups. It is designed to pool the risks, and with rate limits and guarantee issue in the group market, it has become difficult for insurers to offer plans and to stay in the black. Some states have allowed “groups of one”, but the ability the owner to choose individual or group insurance results in lots of gaming of the system – typically only those with serious health conditions buy the group insurance. |
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From : Betty Stamatis
Location : Park Ridge , Illinois |
Question :
As a woman-owned small business, we are very interested in the progress of H.R. 525: Small Business Health Fairness Act of 2005 which has been passed by July 26, 2005 vote in the House of Representatives. Now, we are looking gor information on S.406 and its progress in the Senate. The last update states the Senate has yet to act. Does this mean this is going to languish for another year? If so, with the added year for implementation, can we expect AHPs to be as far off as two years? The small business community could really use some earlier assistance with making health packages more affordable so we can offer better insurance to our associates and their families. Thank you for this opportunity to chat about this vital issue |
Reply :
K. Kerrigan: The opponents of the legislation (insurers) are also concerned about competition and a restructuring of the market, and therefore have been a powerful voice against AHPs. The big insurers have a lock on business in the states with some states only having three, two or even one insurance provider – wow, some choice! With respect to the Senate, you are right – they have yet to act. However, progress is slowly being made. There are now 13 cosponsors of S. 406 and there was a hearing on the legislation on April 21, 2005 by the Senate Health, Education, Labor and Pension Committee. The Senate can act this year and President Bush has been encouraging them to do so. However, it appears that the Senate will not act unless they believe it is a priority to do so – that’s where you and other business owners and entrepreneurs come into the picture. If you are a strong believe in this legislation and AHPs, you have to contact your U.S. Senators and let your voice be heard. |
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From : Ken Holtyn
Location : Kalamazoo , MI |
Question :
What about wellness programs as part of the cost containment strategy to rising health care costs? |
Reply :
K. Kerrigan: Small business owners that I have talked to have said that such wellness initiatives may not produce the type of significant savings that they hoped for with respect to health coverage costs, but there are other benefits. For example, improved productivity, reduced absenteeism and a positive impact on workers comp costs. If you are looking to start a wellness program but are overwhelmed by the thought – the best course is to create a simple plan and set simple, doable goals. |
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From : Elaine
Location : Riverside , CA |
Question :
What is the best way to go about finding health coverage programs for the small business? Can we join an existing organization of small business to obtain better rates/coverage? |
Reply :
K. Kerrigan: Ditto to J.P’s response, but don’t forget to also look into HSAs – www.hsainsider.com has an easy reference tool that lets you look at what companies are offering HSAs in your state and what type of products they are selling. While state groups can “pool”, national or regional groups (that cross state borders) cannot. That is why the small business community, in general and there are a couple of exceptions, is supporting the AHP legislation as described in response to previous questions. |
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From : rebecca johnson
Location : helena , mt |
Question :
What are the affordable options for small businesses to offer health care to employees in the state of Montana. How do you find these options? |
Reply :
K. Kerrigan: State-based business organizations in Montana (i.e. the Bozman or Montana State Chamber) would be your best bet. Options are really quite limited until AHPs pass, or until individuals/self-employed people are allowed to shop across state borders or on the Internet and buy insurance from any state in the nation as would be the case through The Health Care Choice Act, which creates a nationwide marketplace for health coverage. You also might want to visit www.ehealthinsurance.com and plug in the type of small business plan you are looking for and see what options arise. |
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From : Karen Alston
Location : Washington , DC |
Question :
How can a small business i.e 1 or 2 employess afford health insurance? Realistically? Or at the rate of large corporate employer's options. |
Reply :
K.Kerrigan: That is the question that Members of Congress pose to me whenever I testify on Capitol Hill. The answer is, and you know this, is that health insurance costs are exorbitant – in many states health coverage is becoming a luxury. That is why we need more competition in the insurance industry, and in my view, less government intrusion. Almost without exception, each time government has tried to help provide “access” to health care and “better” coverage, more people become uninsured and prices rise. Sure, the gold-plated policies in New York and New Jersey are wonderful…if you can afford them, and most small business owners and entrepreneurs cannot. We could quite possible be paying rates more equal to large corporate employers, but only if there was equity with respect to public policy – that is what AHPs would offer in terms of giving small business owners larger pools to leverage in price negotiations, as well as operating under one set of uniform federal guidelines, which would dramatically lower costs. I encourage you to see if HSAs are an option (www.hsainsider.com). |
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From : Kristin Gillenwater
Location : Meadows of Dan , VA |
Question :
I am self-employed and could not get health coverage for my husband because of his medical history, and our family health coverage is well over $600 a month. How can it be possible that if I work for a large company, the health coverage is a given for my entire family, no matter anyone's health history, but when I buy insurance for my own family, this comes in to play? How is this fair and equitable? What can I do to make self-employed health care work similarly to large corporate health care packages? How can I get the government to help out small businesses with the rising cost of health care? Why is nothing being done?? |
Reply :
J.P. Wieske: There is a good solution to the problem, and it is called a high risk pool. It spreads risks across the market broadly, and ensures those with health conditions can obtain affordable health insurance. Unfortunately, Virginia does not have a high risk pool. |
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From : Jeff Bolmeyer
Location : Wilmington , DE |
Question :
What is the best way to communicate high ded. health plans to my employees? |
Reply :
J.P. Wieske: I would guess my wife has many the same kinds of concerns. Managed care has trained us to believe lower co-pays/lower deductibles means more security. We are paying a smaller and smaller portion of our own health care – a 2001 HIAA report indicated that we had never paid so little. It is hard to get over the first year hurdles. If you are helping to fund the H.S.A., the deductible is actually much less. Here at CAHI, for example, we may be looking at a $1500 deductible, but if they fund $1,000 dollars of the deductible, the cost is far less for me – only $500. Money that isn’t used stays in the account and may be available for use next year making next years effective deductible even lower. The truth is you are putting LESS money in the insurance company pocket, sharing more of the risk, and over time almost everyone will win with a health savings account. (even those with high medical costs, because the contributions are tax deductible) |
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From : Daniel Chambers
Location : Keswick , VA |
Question :
Thanks for your time and expertise! How do I explain the benefit of an HSA plan to my employees? They are a bit nervous about the high deductible. |
Reply :
K. Kerrigan: A great resource to turn to that will help you better explain and provide the details of HSAs is the HSA Coalition website: www.hsainsider.com. After going to the home page, you will see the listing of topics on the left hand side of the page. Click onto the Q&A section where you will find the typical questions. Also, download a copy of “HSA Road Rules, 3rd Edition” which provides all the details about HSAs. It is a great reference guide when employees have specific questions. Lastly, in the Q&A section, the “How HSAs Work” primer developed by the White House is posted – another solid resource. |
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From : Fernando Garza
Location : |
Question :
What is the average Percentage of Health Premiums that Small Business Owners are paying for there employees |
Reply :
J.P. Wieske: Most carriers require that the minimum contribution is 50% of the employee (not family) cost of the least cost plan. However the average employer contribution is 80% |
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From : Francine Manilow
Location : Chicago , Illinois |
Question :
I am presently looking for health coverage for my employees. There appears to be a new program where by one "banks" $3,000 for medical expenses. Question. What appears to be the best program for a small business and how does one find the best value for excellent health insurance for their employees? |
Reply :
K.Kerrigan: For more information on HSAs, you can visit HSAinsider.com. Small employers are saving money through HSAs with recent studies finding savings anywhere from 10-30% or more. |
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From : Tim Lee
Location : Newark , NJ |
Question :
With health insurance premiums jumping by double digits every year, how can a smaller company survive without passing some of these costs to employees in the form of higher contributions and or higher co-payments? |
Reply :
J.P. Wieske: I am not sure you can. Costs for medical care continue to rise, although the rate has slowed down some. I would suggest that where possible, you provide employees the option of several different plans and allow them to choose based on your contribution. |
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From : Carmen Canessa
Location : Bloomington , Minnesota |
Question :
For a small business like mine (high technology) it appears the road is always uphill! Name recognition, price, service, product reliability, and the rest of issues that play a roll in each industry. Why is it that health care has become another hurdle? Can we form buying groups like dealers do for products to leverage price? |
Reply :
J.P. Wieske: The Association Health Plan suggests that exact approach. Other states have also proposed buying groups as well, varying from totally private to public approaches. K.Kerrigan: You forgot to mention access to capital, government rules and regs, the threat of litigation, etc – just thought I’d throw some in too! Health costs has become another hurdle because we know we have to offer coverage in order to stay competitive, grow and to attract and retain a quality workforce, and I know how competitive it is in the high-tech industry. But it seems that health insurance costs have gotten beyond our control – sure, a nip an tuck there, but everything we try to do is neutralized by the shock of yet another premium increase. I’ve written enough on AHPs, but I encourage you to weigh in from the political perspective and ask your U.S. Senators to support S. 406 and other reforms that will help make health insurance more affordable and competitive |
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From : Lew Blakeney
Location : Winthrop , WA |
Question :
Can you recommend a way small business can get the feds to require state government, like WA State, to reduce health insurance costs by reducing the required mandated coverages for business paid health insurance plans? Or could there be a way for small business to buy a universal affordable group health insurance coverage for employees? |
Reply :
It's great to be here. I'd like to thank the SBA for their leadership on this initiative. Amen to J.P! |
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