High health insurance costs squeeze Dayton startups
Early estimates say the average health insurance premium on the Affordable Care Act exchange is predicted to rise 8.2 percent next year. That will mean the annual cost for an average individual plan will go from
That's a sharp increase from 2013, the first year of Affordable Care Act marketplace enrollment, when the average individual premium in
The uninsured rate has dropped to a historic low with the help of exchanges created by the Affordable Care Act, but for some consumers the cost of insurance on these exchanges has soared to levels that are difficult to manage. Among those affected are startups, which typically don't have employer-sponsored health benefits.
The cost of health insurance particularly impacts would-be business owners with families that also need health benefits, and individuals might be more able to strike out on their own, said
"To some people, they realize it's going to keep them from going out on their own," Winburn said.
He said prospective business owners are trying to project if they can provide employee benefits in the long term, and are looking at whether they should have full-time staff or look at a model that uses independent contractors.
"It's part of sustainability and recruiting top talent," he said.
There were 230,127 health plans sold through
For the two-person team at JetPack, a downtown Dayton web design startup, roughly
"When you're looking at a small startup, an extra
Ditmer and co-founder
Wartinger said along with the cost of the plans, the local health insurance options on the exchange have more narrow provider networks than his employer-sponsored insurance, which has been discouraging.
"The doctor I go to had zero plans that were covered by the Affordable Care Act," he said.
"It makes for a really impossible situation," he said. "There's a bubble there. This isn't sustainable."
Kaiser said while he'd like to provide health insurance as a benefit, the small business has to make a calculations on where to spend money, like whether to hire more people, give everyone insurance benefits or give that money in raises or bonuses. The cost of giving everyone at Wilderness health insurance is the equivalent of hiring an employee.
With all the mergers and acquisitions going on in health care, he it feels like consumers should be seeing cost savings from consolidated services and less overhead.
"Traditionally you'd try to pass those savings onto your customer. That's not happening here," Kaiser said.
Recommended for you
Recommended for you
Recommended for you
Most read
1.
1
2.
2
Photographer uses downtown Dayton fire as wedding photo backdrop
3.
3
Who's in Jail -- Latest Montgomery County Bookings
___
(c)2018 the Dayton Daily News (Dayton, Ohio)
Visit the Dayton Daily News (Dayton, Ohio) at www.daytondailynews.com
Distributed by Tribune Content Agency, LLC.
Medicare issuing new, more secure cards, prompting scams
The Latest: Trump interviews 4 Supreme Court candidates
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News