By: Health Insurance
Submitted: 2009-08-24 13:17:49 | Word Count: 432
It's time for Dan Verbeten of Hortonville, Wis., to renew the health care plan for his 44 workers, and he has some important decisions to make.
Does he continue paying 60 percent of the premium cost, or does he pass on a larger share to the employees? Does he go with a plan that includes a $2,500 deductible, or opt for one that calls for a $5,000 deductible?
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"It's gotten to the point where it's such a huge expense that I don't know if we can continue doing 60 percent," said Verbeten, owner of Gardan Inc., a contract manufacturing firm in Hortonville. "It's the fourth-largest expense item."
Verbeten isn't alone in his quandary. Small-business owners across America are weighing options to cope with the rising cost of providing health insurance for their employees.
In Battle Creek, Erick Stewart, president of Stewart Industries, has seen the cost he pays to insure his employees increase by more than 20 percent in some recent years.
"On a good year, I may see a 4 percent increase," Stewart said Friday. "On an average year, I may see 12 or 15 percent."
The nonprofit Community Action in Battle Creek is projecting insurance premiums for its employees will jump 44 percent this year, Chief Executive Officer Nancy MacFarlane said.
"Cost controls are very important," she said. "I haven't seen the private sector make much headway in that."
As debate rages over health care legislation, the impact on small businesses has become central to arguments for and against the Democrat-sponsored proposals in the House and Senate. Proponents say small-business owners will find relief from escalating costs, while critics counter that they will suffer the consequences of a bad plan.
Stewart Industries employs about 50 people and pays the full cost of their health insurance premiums on plans Erick Stewart called "competitive" and "reasonable."
He said he's optimistic that the final reform passed by Congress will help his employees and workers at similar small businesses.
"Their safety and well-being is first, because if they're not healthy, they can't come here and do quality work," he said.
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