I recently attended a hearing for the State of Massachusetts Insurance Commissioner. They were doing a listening tour around the state and attempting to hear what the citizens had to say about health insurance. For those of you who are not aware, the state of Massachusetts decided in 2006 to require all residents to carry health insurance. As part of that law, they also mandated that businesses offer health insurance to their employees if they have 11 or more full time equivalents. That basically means 11 full time employees, or any combination that equals 440 hours on average per week.
My original intention was to show up and learn what everyone else had to say, but I could keep to just that. I got really motivated by the other business owners that were standing up and speaking about the problem with Health Insurance (not necessarily in this country) specifically with regard to Massachusetts. So I spoke.
I put my words on record and I spoke from my heart, nothing prepared, nothing to give them to refer to, no charts, no lecture….just me. As I spoke I found myself getting more and more frustrated with the system. I listed previously to people talking about 15% increases year over year in premiums, and that was the low end. Others mentioned 50% increases this year. Clearly these folks were angry. 2010 was going to be the year that we offered benefits to our employees. I had this as a goal, and I really want to do this (note that we do not have 11 full time equivalents). But after listening to the range of increases, I was shocked, and frankly afraid, to offer benefits to our employess for fear that it would desimate our workforce due to inablility to afford the increases.
There were many media outlets in attendance and you can read more about what people were saying at the hearing if you take a glance at their articles. Here are just a few:
Worcester Business Journal : Business Owners Decry Health Insurance Hikes
Telegram and Gazette : Small Businesses Appeal to State Official for Help
I am not sure what can be done to get the premiums under control and to set standards to not allow double digit increases each year. It’s really out of control and someone is at fault. I don’t understand the industry to know who exactly is at fault, however I have heard the Malpractice Insurance is and issue, the cost shifting from medicaid to the non-medicaid to cover expenses is an issue, the price that doctors and hospitals charge is an issue…..and even the insurance companies. Overall I think that there is plenty of blame to go around but no one group is taking any responsibility for controlling the costs.
If Massachusetts wants to get the economy going, then they need to life the 11 FT equivalent piece of the law and allow small businesses to grow, and generate more revenue, which will in turn add to the tax base and allow that small business to afford health insurance without regard to going bankrupt!