Rising insurance costs impacting small businesses

Health Overhaul Tax Confusion

CLINTON, Iowa (KWQC) — The Obama Administration sent out letters to insurance carries with the rates for the next year with many seeing a higher premium.

That high premium is hard for small business owners like Pat and Ellen Determan to swallow. The couple owns a convenient store/gas station in Clinton called Lyon’s Filling Station.

The couple has to purchase their own insurance plan and said originally when the Affordable Health Care Act started their insurance rates actually dropped. “A couple of years ago when Obcamacare came about we actually, our insurance went down like $400 or so a month,” said Ellen Determan.

Unfortunately, that lower prince didn’t last long. The couple was paying around $1,200 per month until now. “It’s going up by 133.77 per month and that’s a lot,” said Ellen Determan.

The new premium increase adds $1,600 to their cost for healthcare. That is money the couple could be using for their business.

Despite the spike in prices, the Determans said their family needs to health insurance. “With my husband having diabetes we have to have really good health insurance,” said Ellen Determan.

The Determans considered what their costs would be if they didn’t carry insurance, but with Pat relying on prescription medications for his diabetes the couple would only have to pay even more if they didn’t carry insurance.

The prices do make a difference for this small business. The couple can’t afford to offer their employees health insurance or to even help pay for part of it.

“$650 a month for an employee’s insurance, that’s a lot of money, I mean there’s just absolutely no way,” said Ellen Determan.

The couple hopes prices drop, saying if healthcare was cheaper they would offer benefits to their employees.

The new premium prices go into affect next month.

 

Here is a link to the original story confirming the rising premiums: http://kwqc.com/ap/obama-administration-confirms-double-digit-premium-hikes/

 

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