Under Obama Care, no longer can insurance companies price their policies based on prior experience. Like the old goal of Communism, everybody pays the same, whether they strive to be healthy, or smoke 3 packs a day and overeat to the point they are obese.
Our 32 employees have tended to be healthy with one or two exceptions, and as a result, we have earned a so called co-efficient of .75 in recent years, the lowest co-efficient allowed under current insurance law. Obama Care silently eliminated the use of co-efficients that were based on a companies prior claims. Thus, without that coefficient, our similar plan (co-pays up to $40 from $35, and out of pocket max, single/family, from $2800/$6500 to $4000/$8000), went from $165,000 per year to $243,000 a year or a 47% increase for a company that made a profit last year of just $187,000. That $78,000 increase would reduce our profit to $109,000 for a potential profit margin of 2%, all other things being equal. At that small a margin, our company could end up losing money and eventually going out of business.
Obama no longer wants his creation called “Obama Care”. I agree, it should be called UN-ACA, the Un-Affordable Care Act.
Bill
Premium Before Obamacare: 165000.00
Premium After Obamacare: 243000.00