Quick Links: Return To Entrepreneur’s Resource Center

Rein in Health Insurance Rates

Digital Library > Human Resources Management > Health care “Rein in Health Insurance Rates”

Entrepreneurs who provide health insurance to their workers faced soaring premiums last year. Small-business owners with less than 10 employees paid 9.2% more for group health insurance in 1999, compared with an average of 4.8% for all businesses, according to a survey by the Kaiser Family Foundation and the Health Research and Educational Trust. This was the biggest annual increase since 1994.

Some entrepreneurs cope with rising costs by offering alternatives to their employees. Kim King, president of King Security Services Inc. in San Francisco (1999 sales: $5 million), gives all of her 230 full-time workers a choice: Either accept a "health-plan allowance" of 35 cents/hour and get your own insurance, or join the company’s group HMO plan. She reports that 90% take the allowance.

"They’re able to get insurance from their spouse’s plan or some other source," she says. "When we set up the allowance five years ago, it equaled what we were paying for health insurance for each employee. Now we pay much more for insurance for those who want it."

Costs are expected to increase as state legislatures continue to require health plans to include certain coverage. For example, some states may begin mandating that insurers provide alternative health-care benefits, as many states do now for chiropractic care.

Writer: Morey Stettner

Related Articles...
Once is Not Enough

Ann and Edward "Ski" Olesky took FastTrac in the late nineties, and were so pleased that they repeated the program a few years later.

Read More ...
How Empowered Are Your Employees?

To remain competitive, organizations are abandoning the traditional hierarchical command-and-control management style in favor of establishing a work environment that advocates employee empowerment at all levels. This quiz tests your readiness to accept an empowering work environment by evaluating the degree to which you hold these values and beliefs.

Read More ...
Determining the Real Costs of Lead Generation — and Making It Work

“Determining the Real Costs of Lead Generation — and Making It Work” Keys to a successful marketing program: targeted audience, sharp appearance, valuable offer. When you buy a newspaper or a magazine, are you really paying for the paper and the ink? If the paper and the ink are what you are really buying, it makes no difference if the

Read More ...