Page 30 - Wire Rope News & Sling Technology - June 2019

continued from page 28 average deductible has risen from $735 “For smaller employers in many
are glad that everyone is covered, and ten years ago to $1,573 today. That’s a states, SHOP is a great resource,” says
they like the coverage for pre-existing much faster pace than the time frame’s Steven Eastaugh, a Washington, D.C.,-
conditions and for employees’ children corresponding 26 percent increase in based health economist, speaker and
up to age 26. These provisions help their wages and 17 percent inflation. “Over consultant (eaglestalent.com/Steven-
employees have peace of mind.” 26 percent of workers have deductibles Eastaugh). “It allows them to get the
On the negative side, many employers of at least $2,000 a year, with higher pricing that only larger employers en-
are still incurring premium increases, ones more common at small firms,” joyed before.” Another benefit is flexibil-
and they believe the ACA’s coverage says Kaiser researcher Matthew Ray. ity. “Small business can enroll in SHOP
mandates have precluded cheaper alter- coverage any time of the year,” says
natives. The Trump administration has MANDATED COVERAGE Eastaugh. “And if you add one or two
responded to these concerns by promot- The 2017 tax reform act reduced the new people during the year you can cov-
ing new categories of plans with lower penalty to zero dollars for individu- er them by locking in new start times.”
premiums (More on this below.) als who failed to meet their individual Also, take advantage of the tax credits
mandate. But that change in the law available for SHOP participants if you
KEEPING INSURANCE did not affect businesses with 50 or have fewer than 25 FTEs, with average
Despite the hassles and expense re- more people who are deemed to be full- annual wages of less than $50,000.
quired to compare competing plans time equivalent employees (FTEs). “If Some awkward sign up procedures
and manage paperwork, employers as you do not provide coverage you will be and a lack of sufficient publicity, says
a whole do not want to drop health in- charged a penalty,” says Stich. “And Eastaugh, has kept the program from
surance as a benefit. Some 57 percent the IRS has already been sending out expanding very quickly. “Today just
of all firms offer some health benefits, penalty letters.” under 30 states are offering SHOP
according to Kaiser. The figures are 98 Employers with fewer than 50 FTEs programs, and even there the program
percent for businesses with over 200 are not required to offer any coverage covers only two of every 100 employees.
workers; 70 percent for those with from at all. Does your own business qualify But I estimate that by the end of 2019
10 to 199 workers, and 47 percent for for an exemption? The answer can be SHOP will be covering about 190,000
those with three to nine workers. elusive. “In many cases it can be dif- Americans, and maybe 250,000 by the
The fact that all those figures have ficult to determine who is a full-time end of the following year.”
remained fairly steady over the past employee,” says Ryan Moulder, a part- For more information about SHOP,
couple of decades testifies to the sticky ner at HealthCare-Attorneys.Com, a go to healthcare.gov/small-businesses/.
quality of the benefit: Employers who nationwide consultancy based in San-
offer health insurance are reluctant ta Monica, CA (healthcare-attorneys. PRIVATE EXCHANGES
to let it go. The reason’s not hard to com). “A lot depends on how good your Not thrilled with the SHOP selec-
figure: Quality employees expect good internal data is.” For help in calculat- tion? Investigate the offerings of any
health insurance and may jump ship ing your own FTE, go to healthcare. private health insurance exchanges
for a competing firm if the benefit is gov/shop-calculators-fte. You may also that have sprung up in your state.
dropped. That’s a particularly believ- want to consult with your accountant. These are often set up by insurers, bro-
able threat given the nation’s low un- kers or consulting firms. Like SHOP,
employment numbers. “We have a SHOPPING AROUND these exchanges take care of the ba-
shortage of labor right now,” says Clax- So how can you reduce your own sic human resource functions (such as
ton. “Employers have to provide com- health insurance costs? Start by mak- continued on page 32
petitive wages and attractive benefits ing sure you compare all of the avail-
or people will go somewhere else.” able plans in your region. “It’s impor-
tant for smaller employers to go out to
SHARING COSTS bid for plans,” says Larson.
Rising health care costs, of course, Does shopping around really make
can erode the bottom line. Employers a difference? Apparently so, judging
are stemming the tide by asking em- from the Kaiser numbers. “There is a
ployees to shoulder more of the premi- substantial variation in the average
ums. “Today’s employees experience a amount that people pay for premiums,”
significant dent in their take-home pay says Claxton. “Fifteen percent of work-
as a result of health insurance premi- ers are in plans that have premiums of
ums,” says Drew Altman, president more than $24,000, and nine percent
and CEO of the Kaiser Family Founda- are in plans with premiums of less than
tion. “Their cost sharing has been ris- $14,000.” While the variance may stem
ing much faster than their wages.” from many causes (including regional
Of the total premiums of $19,616 for variances), the experts say employers
family coverage in 2018, employers paid who spend the time comparing offers
an average of $14,069, with employees can snag better deals.
kicking in $5,547, according to Kaiser. If you employ fewer than 50 full-time
The average employee premium cost workers your first stop should be to
sharing varied from 26 percent at large The Small Business Health Options
firms to 38 percent at smaller ones. Program, or SHOP, the ACA-sponsored
Employers are also asking their Internet-based insurance marketplace.
workers to accept higher deductibles SHOP policies are available through
when they go to the doctor’s office. The insurance brokers.

30 Wire Rope News & Sling Technology June 2019