Well, what a surprise. Healthcare insurance is back in the news.
But, the problem is really how do we find ways to ensure (not insure) that citizens have adequate access to healthcare. And, then how do we find ways to pay for that.
The health care cost spiral is slowing- finally. Prior to 2008, the increase averaged at least 8% a year- for two decades! Over the past 5 years (up to 2014), total healthcare costs have growing by less than 3% annually. That trend is up for grabs through, as the last year’s(2015) increase seems to 5.5%- but the current year’s increase will be a little less at 4.8%. Except, these numbers still don’t tell the whole story….
Well, I didn’t think this explanation of health care coops would go on this long. But, it turns out there’s a lot to setting up new insurance companies. (Yes, I should recall how much it took to set up our liability insurance coop, as I described here.)
So, yesterday, I talked about how corporations are using PPACA (Obamacare) as a wedge with which they can obtain information to which they really are not entitled. And, as a means to lower their health care costs, via an avenue that is impermissible. One that the regulators have begun to address.
I have a few posts in the queue about the Affordable Care Act and how it’s been faring. In particular, how the actions of those that detest the act have made things more intolerable. But, today, I will be discussing how companies have been subverting the act for their own purposes.
For years, I’ve been working with my clients to provide special benefits; the kind that make starting and running an entrepreneurial business worthwhile. One section where I’ve been helping them is healthcare; to provide medical and dental reimbursement plans and flexible savings account plans (FSA).
There is a penalty that can be imposed as of 1 July 2015 to small business employers who reimburse employees for premiums paid for individual health insurance policies under Obamacare (PPACA). Yes, that means if you don’t offer insurance because your state does not offer plans for small employers and the various insurance companies charge rates that are outrageous, you can still be penalized. But, there are ways to fix this. Read on…