More Small Firms Drop Health Care

More Small Firms Drop Health Care

online.wsj.com

Accelerating health-care premiums and sharp revenue shortfalls due to the recession are forcing some small companies to choose between dropping health insurance or laying off workers -- or staying in business at all.

Sheryl Weldon, owner of Commerce Welding & Manufacturing Co., saw health-insurance payments increase to more than $800 monthly per employee from about $200 five years ago.

About 10% of small businesses are considering eliminating coverage over the next year, up from 3% in 2005, according to a recent survey by National Small Business Association.

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An increase of $800 for health care coverage?

I am in Canada now and how come I haven't seen anything remotely similar to this nightmare?

Are people here seeing this as well?

I don't know, seems hard to believe.

I think this can create a massive ripple effect affecting many different areas of the economy.

online.wsj.com
(visit the link for the full news article)

My company isn't cutting the benefit just yet, but we have been told that we are switching companies. I assume to a cheaper one. I've never been covered by Aetna, so we'll see what that brings. My company is a small, local business, so I am glad they are not cutting it completely.