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Why your small business group insurance may be obsolete!

  • Broadcast in Finance
Financial Life

Financial Life


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Affordable Care Act a boon for some small businesses

May 10, 2014 8:03 PM

By Bill Toland / Pittsburgh Post-Gazette

Bob Goldstein, a certified public accountant, knows his math — but he still couldn’t believe the numbers.

At his small accounting firm last year, health insurance for him, his wife and his handful of employees was costing $8,574 a month — or $102,888 for a full year of Highmark premiums.

That was before the Affordable Care Act took full effect. Now, premiums for his employees are costing $1,841 a month, or a bit more than $22,000 a year.

Annual savings? Nearly $81,000.

“Anybody who has less than 50 people would be crazy not to look at” individual insurance plans for employees purchased through, or alongside, the new health insurance marketplace, the Point Breeze CPA said.

Much has been made about how the Affordable Care Act will affect small businesses. A February report from the federal government said more would see premiums increase, rather than decrease, under the new pricing and ratings systems put in place by the ACA.

All new small-group policies are now treated like individual policies, and each employee — and covered family member — is rated and priced separately based on age, gender, place of residence and smoking habits. Those individual premiums are added up, and the small business pays the bill

Read more: http://www.post-gazette.com/stories/#ixzz3AZR7MqLf