Insurance cost for small businesses in GA on the rise. How can owners keeps expenses down?
Reality Check is a Ledger-Enquirer series digging deeper into key issues and focusing on accountability. Have a suggestion for a future story? Email srose@ledger-enquirer.com.
The American healthcare system has been forced under the microscope on the heels of the deadly shooting of the United Healthcare CEO, Brian Thompson. However, the inequalities around claims, coverage and denials have been on the minds of Americans for decades.
Georgia is no exception to the pitfalls of the industrial insurance machine. Recent studies have revealed that Georgia ranked as the fifth worst in the nation for access to healthcare and Georgia small businesses shoulder much higher insurance costs than their larger counterparts.
A comprehensive analysis from Forbes examined factors associated with healthcare in all 50 states and it painted an alarming picture of the challenges Georgians face in accessing quality, affordable healthcare.
Georgia’s numbers for individuals:
Second-highest percentage of residents who lack health insurance coverage (11.7%).
Second-highest percentage of residents who chose not to see a doctor due to cost (15.2%).
Eighth-highest average deductible for employees with single coverage through employer-provided health insurance ($2,269 annually).
Eleventh-lowest number of community health centers per 100,000 residents (0.32).
Small business owners incur higher costs
A new report from The Commonwealth Fund reveals “that workers in small firms—defined as those with fewer than 50 employees—often pay higher premiums than employees at larger companies, while receiving higher deductibles and less financial protection.
Factors driving the cost up
The average family plan deductible for small-firm employees was $5,074, more than $1,500 higher than the $3,547 average for large-firm employees. These costs are significantly higher in Georgia, especially as small-business owners try to stand in the gap for their employees.
Georgia is one of the 40 states (including the District of Columbia) in which small-firm employees contributed a larger share of the premium for family coverage than their large-firm counterparts.
According to leading sources, some of the contributing factors include:
A smaller risk pool
Higher administrative costs
Limited negotiating power
Higher deductibles and out-of-pocket expenses
Solutions for business owners
The experts at the Commonwealth Fund suggest a handful of remedies that might alleviate the strain on smaller Georgia companies, especially since Georgia has not expanded Medicaid.
These could work toward more equitable access to healthcare:
Expand Medicaid access — this would allow more people to enroll in Medicaid.
Allow greater access to marketplace subsidies — more small-firm employees could qualify for more coverage.
Permanently extend enhanced marketplace premium tax credits — this would include keeping the subsidies introduced during the COVID era and would reduce premiums for consumers.
Introduce measures to limit growth in premiums and cost sharing.
Other voices in the insurance trade have advice for owners:
Enroll in SHOP plans — These are small business health options programs, like Georgia Access that help smaller companies find plans within their budget.
Utilize health reimbursement arrangements (HRAs) — These allow employers to reimburse employees for individual health insurance plans, tax free.
Bundle insurance policies — Combining different types of insurance, such as general liability and commercial property insurance into a business owner’s policy (BOP), can be cost-effective.
Compare quotes and evaluate coverage — Using websites from companies like Insureon can help you get a comprehensive look at what’s available.
Utilize state-specific resources — Utilizing Georgia-specific resources can provide access to ACA-compliant plans and potential financial assistance, which can help in managing health insurance costs.
Georgia’s healthcare crisis is a concern for all its residents, and with costs rising for both individuals and companies, it’s important to remember that we are all stakeholders in this issue. For Georgia business owners, especially, navigating the increasing costs calls for a more flexible and proactive approach to keep costs low and to work to provide health coverage for all employees.
