Tuesday, October 15, 2013

How Much More Will Obamacare Cost This Business?

Larry Patterson will face up to a 72 percent increase in his costs if he wants to continue offering health insurance to his employees in 2014.
Patterson, a North Dallas businessman, operates a franchise called the Glass Doctor that repairs auto glass, windshields, windows, and shower doors. Because Patterson wants to attract the most qualified people to work for him and ensure their safety, he’s made sure to provide affordable health insurance options to all employees since inception.
But thanks to Obamacare, health insurance costs are set to skyrocket. When we met with Patterson in late September, he said his company was “frozen” waiting to find out if his ability to continue providing his employees affordable coverage was in jeopardy.
Now, just a few weeks later, Patterson’s worries are proving true. He received a letter from his insurance company that details high cost increases on the insurance he offers employees.
The letter detailed an 18 percent increase in premium costs for his annual health insurance renewal if he renews before the end of 2013. However, once the health insurer and reinsurance fees kick in, the increase will actually be 23 percent. This is on top of a 20 percent increase in 2011 when many of Obamacare’s provisions first kicked in.

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