Health Insurance Costs Surge For Small Businesses

New York City small business have seen their health-insurance premiums increase by an average of 17 percent this year. Small-group HMO plan providers like GHI HMO Select and Healthnet have increased their premiums by 30 percent, while premiums at Aetna and policy rates at HIP of Greater NY rose by 20 percent, according to the Post.

The surge in costs comes after 10 years of state insurance deregulation that has allowed providers to up their premiums without getting approval from government officials. "Double-digit premium increases—coming at a time when so many New Yorkers are financially struggling—demonstrated dramatically why insurance rates must be regulated," said state Insurance Superintendent James Wrynn. "We must put in a place a system of prior approval where insurers must justify increases before raising premiums."

But insurance providers say the state is at fault for the rising cost of premiums. "The state increased taxes on health insurers by $700 million last year. The taxes now total $4.2 billion," Leslie Moran, a spokeswoman for the health insurers, told the tabloid. "The taxes have an impact. They increase each individual premium by hundreds of dollars. How about lowering the taxes?"

Contact the author of this article or email tips@gothamist.com with further questions, comments or tips.

By Ben Muessig in News on March 17, 2010 5:56 PM

Comments [rss]

Greenpoint60

Employees should read their policy, chances are it is watered down if you really get sick. Also a little known fact is that insurance cos will bend the rules if HR puts on enough pressure to make sure the big shots get covered.

I am so glad I am in perfect health.

Gotham Extremist

sadly, you just jinxed yourself.

JacqueMehoff

The best wealthcare system in the World.

famdoc

Be ready, workers of the world, your employer, if he gives you health insurance, is being forced to offer you a high-deductible, generic-only plan. That means that the first $3000 of your health care expenses each year will be your own responsibility. You won't be able to afford those expensive procedures you've taken for granted all these years: an MRI of your head for your migraines, arthroscopic repair of your ACL when you fall down skiing, a stress test for every twinge or huff and puff in your chest...

I'm not saying the insurance companies are innocent. They're not...most are simply out to make money for their stockholders. But, the cost of health care is partially to blame: we have the best health care system in the world and we've come to expect high-technology health care on demand...whether we need it or not. Back to the days of the family doctor and good-old-fashioned doctoring. That's what I say.

birdmechanical

Yeah, best health care in the world if you can afford it. Or if the insurance companies find a reason to cut you because they think you cost too much.

However you think of it, I don't see a practical use for "for-profit" insurance. Places like Blue-Shield had record profits and they still raised their rates by up to 39% http://articles.latimes.com/2010/feb/04/business/la-fi-insure-anthem5-2010feb05

They serve no practical purpose except to make money at the expense of those who sometimes are unlucky enough to get in an accident or get horrible diseases.

Also, speaking of the cost, we pay for the rest of the world's treatment as well. For example, in pharmecutical we pay more than double than most of the rest of the world for drugs. Why? Because they can make us pay whatever they want and subsidize everyone else. Which makes things more difficult for those with less money here.

The Other Sarah T

Yeah ! U-S-A ! U-S-A ! Best healthcare in the world ! Unless you happen to be poor & you have to go to go to the emergency room (if they'll take you), or you have a pre-existing condition, or you're self-employed, or you aren't covered by your employer, or you're unemployed, or you actually get sick & your insurance company drops the coverage you've been paying an arm & leg for ! Fuck yeah !

Kojak

I'm sorry but increased taxes alone cannot justify a 17-30% increase in premiums.

Something stinks, and its not Mrs Olympia Skunakis's colostomy bag