Some small businesses will see big hike in health care premiums

Some small businesses will see big hike in health care premiums

When this yearês health insurance plans are renewed, some small businesses will see a big jump in premiums. Hereês why:

Starting in 2014, premiums for businesses of 50 or fewer employees will be set for individual employees based on factors such as age and whether they are getting family or individual insurance. That means that employees older than 40 and those choosing family insurance plans will pay much higher premiums. In the past, the premiums were based on an average for all employees at a business.

Starting in 2016, the new method of calculating premiums will be extended to businesses of 100 or fewer employees.

The New York Times reports that –provisions that were supposed to help small businesses offer employee health benefits are largely seen as a failure,” and many small businesses are simply telling their employees to buy insurance through the state health care exchanges. The separate small business exchanges, known as the Small Business Health Options Program (SHOP), are still ramping up.