Successful Blog

Small Business Owners, Employees Sick of Rising Health Care Rates

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With just about everything going up in price these days, it should not come as a surprise that health care rates for both employers and workers have been on a steep upward trend in recent years.

According to a Kaiser Family Foundation/Health Research & Educational Trust 2011 Employer Health Benefits Survey released this fall, employers are putting more money toward their employees’ healthcare premiums than at any other time.

The survey, which interviewed close to 3.200 public and private firms with a minimum of two employees, notes that prices grew 9 percent over the past year. The premiums for family health care coverage have increased to an average of $15,073, with business owners covering more than $10,000 of the cost.

Some highlights from the survey:

  • Six-in-10 companies made health benefits available to their employees in 2011, a sharp contrast from the nearly seven-in-10 who did so just a year earlier;
    • Employees pay $4,129 toward the premium, while employers cover the remaining $10,944;
    • Single policy health coverage costs also grew some 8 percent, coming in at $5.429 yearly. As a result of this coverage, employees pay $921 toward the plan;
    • Overall, PPOs are much more common plan types, enrolling 55 percent of those covered;
    • Seventeen percent of those covered workers are enrolled in an HMO, while 10 percent have a POS plan, and 1 percent utilize a conventional plan;
    • The majority of covered workers have to deal with added expenses when using health care services. A large number of workers with PPOs (81 percent) and POS set ups (69 percent) deal with a general annual deductible for single coverage that must be taken care of prior to all or the majority of services being reimbursed through the plan;
    • In all, 31% of covered workers have a policy with a deductible of at least $1,000 for single coverage, a major increase from the 22 percent such reported in 2009;
    • Most employees also are required to pay some of the expense of doctor office visits. Approximately 75 percent of covered workers’ pay a co-payment toward office visits for a primary care doctor or a specialist physician, along with any general annual deductible a plan may have.

According to a spokesperson for Kaiser, “This year’s nine percent increase in premiums is especially painful for workers and employers struggling through a weak recovery.”

Meantime, according to a report from Aon Hewitt, employees nationwide who have healthcare coverage can figure on seeing a cost hike of seven percent in the coming year.

So, how can both small businesses and employees lessen the chances of needing some of this healthcare in the first place? Among the things to consider are:

  • Stay healthy and active– More and more companies are instituting comprehensive wellness programs that involve disease management, offering cancer screenings, flu shots and smoking-cessation sessions. Some businesses also offer discounts or even free admission to local fitness centers in order for employees to stay in a good shape;
  • Give them what they want – While some plans have requirements as to what coverage and at what cost it is available, sit down with your human resources individual or team and see what your employees are most interested in. By doing so, you can potentially eliminate some of the more costly options if they are not being used;
  • Look into health savings accounts – More businesses are giving a second look to HAS’s. The accounts are tax-exempt, used to cover a number of medical costs;
  • Get a number of quotes – Small business employers are advised to shop around and obtain a variety of quotes. Also, don’t settle on the first quote even if it sounds really good. By shopping around, you have the opportunity to get a good health care insurance product at a reasonable price.

As 2012 comes to light in a little over a month, make sure both you and your employees have a health care plan in place that is both affordable and provides solid coverage.

Photo credit: businessnewsdaily.com

Dave Thomas, who covers among other subjects’ workers compensation, writes extensively for Business.com, an online resource destination for businesses of all sizes to research, find, and compare the products and services they need to run their businesses.

 

 

 

Should Credit Reports be in Play for Potential Employees?

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Despite an economy that some consider to be on life support, there are some employers who are actually hiring these days.

With that being said, should an individual’s credit report be fair game for employers, who are looking for the best and brightest to fill their ranks? Or, should how a person handles their personal money be off limits during the hiring search?

 

Following the Money Trail

In general, there are two schools of thought on this issue.

The first is that what a person does outside of their employment with their money is none of an employer’s business. The thought is that as long as an individual abides by the law, whether or not they have a $10,000 credit card balance is no one’s business.

On the other side of the coin, any applicant for a job, especially those applying for work where finances play a role in their daily responsibilities, should be checked out to see if they have had issues paying off credit card debts, handling a car payment, overseeing a mortgage etc.

While each company has to determine which road it wants to travel, some of them are being told in no uncertain terms by some state and even federal officials that they have limited means to check up on potential employees.

 

Do the Laws Need to be Stricter?

According to federal law, an employer needs written permission from an applicant to run a credit check. Given that replying no may send up a red flag to a possible employer, how many applicants will actually say no to this request? Also, do you not think some employers try and skirt the law and do credit checks anyhow?

Both Connecticut and Maryland recently enacted laws that in essence prohibit employers from using a job applicant’s or an employee’s credit information in deciding whether or not to hire that individual. Both laws will go into effect on Oct. 1, 2011.

The laws recently enacted in Connecticut and Maryland are different in their application but have a number of similar provisions.

While both public and private sector employers are expressly protected by the new Connecticut law, it seems that Maryland’s law will not be applicable to governmental employers. Both laws in essence exempt financial institutions, credit checks required by federal or state law for employment, and credit checks that are for a bona fide purpose that is substantially job-related.

Meantime, Hawaii, Illinois, Oregon and Washington presently limit employers’ use of credit history in employments selections. Legislation that would impose similar restrictions is pending in a number of states and also at the federal level.

With more individuals hoping to return to the workforce in 2011, giving them credit for their workplace experience should override how much they owe on a credit card or loan.

Photo credit: publicdomainpictures.net


Dave Thomas is an expert writer on payroll processing services based in San Diego, California.  He writes extensively for an online resource that provides expert advice on purchasing and outsourcing decisions for small business owners and entrepreneurs such as small business payroll services at Resource Nation.