The Conservative Cave
Current Events => Politics => Topic started by: BlueStateSaint on March 30, 2010, 06:08:47 PM
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Since the Obamessiah got so many of their votes, I have to wonder . . . how's that "hope and change" working out for 'em? :evillaugh:
Health premiums could rise 17 % for young adults
Posted on Tue, Mar. 30, 2010
By Carla K. Johnson
Associated Press
Under the health care overhaul, young adults who buy their own insurance will carry a heavier burden of the medical costs of older Americans - a shift expected to raise insurance premiums for young people when the plan takes full effect.
Beginning in 2014, most Americans will be required to buy insurance or pay a tax penalty. That's when premiums for young adults seeking coverage on the individual market would likely climb by 17 percent on average, or roughly $42 a month, according to an analysis of the plan conducted for the Associated Press. The analysis did not factor in tax credits to help offset the increase.
The higher costs will pinch many people in their 20s and early 30s who are struggling to start or advance their careers with the highest unemployment rate in 26 years.
Consider 24-year-old Nils Higdon. The self-employed percussionist and part-time teacher in Chicago pays $140 each month for health insurance. But he's healthy and so far hasn't needed it.
The law relies on Higdon and other young adults to shoulder more of the financial load in new health insurance risk pools. So under the new system, Higdon could expect to pay $300 to $500 a year more. Depending on his income, he might also qualify for tax credits.
Ahh, the wailing and gnashing of teeth amongst the followers of Teh Wun will be wonderful to behold! I found this by going to RedState and following their link . . .
The rest of the piece is here:
http://www.philly.com/philly/business/89490847.html
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Great.
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I'm wondering how it's going to affect my insurance. We're entering our 3rd year of a 3 year contract in June, so next year all bets are off. We have the entire contract open for renegotiation.
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I'd be very surprised if it's only 17%.
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I'm in business now and from what I've gathered from our insurance company is that our rates will jump 22%. A current single emplyee in my company pays approximately $20/weekly. We cover 70% of premiums currently which helps keep the employee payment low. After this jump we refigured last week what the cost would be for that same person and they will be paying about $36/week. For a yearly cost it almost doubles for that employee. We have 40 employees in my company and our payment on premiums alone for the companiy's part will jump $25,000/month which equals $300,000 for the year that we will be paying extra this year (actually about $225,000 since 3 months have past already this year). For such a small business as ours that is a pretty big hit. We've done all the cost saving measures we can for the last 2 years but this additional hit either forces us to 1) lay-off, 2) pass cost down to the consumer, 3) cut wages, or pass on some more costs to our employees. In order to try and maintain a work force our option right now is #2. If that slows us down then #1 comes into play because almost every company out there will be passing on the extra overhead to the consumer.