Fighting Healthcare Costs
Succeeding in a small business in America can be a daily battle.
The U.S. Department of Commerce has reported that out of every ten small businesses that are created, only two remain after ten years.1 And while a 20% survival rate can be scary enough to deal with, so can employee benefits costs, mainly, healthcare.
Healthcare costs continue to skyrocket across the board. And while big companies and small businesses continue to struggle to keep costs low, it’s usually small businesses that get hit the hardest. Healthcare costs continue to rise, sometimes with double-digit increases every year.
But that doesn’t mean there aren’t options available. Recently, more light has been shed on additional options to help small businesses save money and still offer healthcare.
Several options exist to help small companies reduce costs. One of the most popular is encouraging employees to get individual health insurance. Instead of you, the employer, subsidizing a large percentage of it, the cost of healthcare is shifted to the employee. And on average, individual premiums are less expensive than those of group plans.
And employers can help the employee out by giving a reimbursement to cover some of the costs, or by helping the employee handle their Section 125 deduction. Either way, the small business owner can reduce costs a great deal using this method and oftentimes it can be a less expensive route than the one currently used.
Another increasingly utilized option is to offer Section 105 plans to employees. Section 105 plans allow the employer to purchase a higher-deductible, (but lower cost), insurance coverage for their employees. The high-deductible is offset through an employer-controlled, tax-advantage fund that pays claims to the employees for medical costs below the deductible. The result is savings for the employer and the employee.
But not all companies will benefit from a Section 105. As with all plans, it’s important to consult with a financial professional to decide what type of healthcare savings can be achieved in your small business.
Section 105’s and encouraging the purchase of individual insurance are two ways to potentially save your small business money, at a time when small businesses are getting hit the hardest by healthcare costs. Making the tough decisions in all aspects of your business, and studying all your healthcare options to reduce costs as much as possible may just be one of the things that keeps you in the surviving 20% of small businesses.
Robert Valentine
http://www.articlesbase.com/non-fiction-articles/fighting-healthcare-costs-53296.html
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April 11th, 2010 at 8:13 am
If obamacare is defeated, will you be happy to see your taxes skyrocket to pay healthcare costs?
The us govt pays over 50% of all hospital bills.
Why are people fighting for higher healthcare costs thus higher taxes?
April 11th, 2010 at 1:15 pm
I think I’m glad I am getting close to Medicare. You guys can pay for my health care.
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April 11th, 2010 at 1:17 pm
Hmmm, sounds like a scare tactic.
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April 11th, 2010 at 1:19 pm
How do you think ‘Obamacare will be paid for’,you idiot
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April 11th, 2010 at 1:21 pm
Not everyone, just the easily manipulated idiots.
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Glen Beck’s Brownshorts.
April 11th, 2010 at 1:23 pm
The us govt pays over 50% of all hospital bills.
Maybe Democrats will finally get the message…"STOP" paying for illegals health care with the US taxpayers dime
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April 11th, 2010 at 1:25 pm
I don’t have to pay taxes so I don’t care how much they go up as long as I keep getting free health care
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April 11th, 2010 at 1:27 pm
the question itself makes no sense. Taxes will increase to pay for it, that’s a definite. and I am against more taxes period.
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April 11th, 2010 at 1:29 pm
The fact of the matter is these enraged mobs don’t have a clue of what they are talking about
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April 11th, 2010 at 1:31 pm
You’re an idiot.
Taxes don’t go up when spending bills fail.
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April 11th, 2010 at 1:33 pm
Man. This is wheat thins. It aint going to skyrocket.
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April 11th, 2010 at 1:35 pm
I believe you have the results reversed.
Why all the fear mongering dude?
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April 11th, 2010 at 1:37 pm
KOOL AIDE ALERT____KOOL AIDE ALERT____KOOL AIDE ALERT!!
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April 11th, 2010 at 1:39 pm
And you think that picking up the tab for the millions of uninsured Americans, plus those who opt for the government plan, will not cause taxes to skyrocket?
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April 11th, 2010 at 1:41 pm
Isn’t it a lose lose situation anyways?
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April 11th, 2010 at 1:43 pm
I work for the government and I get great healthcare. They are giving me a raise too and more people to manage. I love this government stuff. Nobody ever bothers me. Free cell phone too, to stay in touch.
Let me be one of the ones to say "Thank You!!!"
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April 11th, 2010 at 1:45 pm
Rationing of Medical Care – Is this what you want? Because this is what is going to happen.
The government will have the power to determine what constitutes an “applicable medical condition”. They will tell you when you can receive medical care.
The government will have the power to determine who is allowed readmission into the hospital. If your condition worsens or flares up again – will they let you back in for treatment? This is obvious government health care rationing.
This chosen “health board” that will make these decisions is above the law and will not answer to any judicial review.
What if you don’t want to be in the government plan? What do you do? What happens?
You will be imposed a tax of 2.5% of your adjusted gross income if you DO NOT participate in this plan – that’s what happens – after all Obama wants EVERYBODY to chip in – right? This particular provision amends the IRS code – without going through Congress – another clear violation of the Constitution.
Anyone who does not have health insurance and is NOT in this plan will be levied this tax.
This shows that the IRS will be a major player in this government scam – everything having to do with this plan will be coordinated through the IRS.
Will this ridiculous plan actually destroy private health insurance companies? The answer is an obvious “Yes”.
Small businesses will either have to provide insurance for their employees to “federal standards” OR they will face an 8% payroll tax – thus businesses that try to stay with their private plan will do say with the governments approval AND will be at a disadvantage (profit wise) to those businesses who actually go for the government option.
There will be tremendous pressure from the government for businesses to switch to the government plan – thus trying to push out the private insurance companies.
As employers throughout America dump their plans and go with the less expensive and taxpayer subsidized government option – less private insurance companies will actually offer plans.
And for those companies that remain – only the government “commissioner” will be able to say what is “acceptable” with regard to their doctors, hospitals and insurance practices – total government control.
Soon most people will have no place to go but the government option. Very sad indeed.
How will this irresponsible Obama administration pay for these grandiose plans of health care for all? You and me – the taxpayer.
There will be a surcharge on all high income earners. The successful people of America – America’s business owners – will bear the brunt of the burden with the rest being eventually shifted to the middle class taxpayer.
High income earners will pay an extra 1% from $350,000-$500,000. An extra 1.5% from $500,000-$1,000,000. And an extra 5.4% over $1,000,000! Ouch!
This again amends the IRS code WITHOUT going through Congress.
This is a clear redistribution of wealth – which was one of Obama’s main goals. The money from the rich is used to support and pay for America’s poor and the minorities.
Since this will be all government run – they will then be allowed to set all the fees for medical services. Thus taking all the profit out of it and permanently ending the doctor boon in America. Where will the incentive be to become a doctor? Why go to all those years of medical school just to earn what the government says you can earn? Innovation will end. New drug discoveries will end. America will no longer be the leader in medical care and innovation. The American medical industry will be a dull, bleak, stagnant field – just the kind our community organizer president dreams of. o_O
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