DALLAS (November 17, 2008) — Small businesses will get hit with significantly higher health insurance increases in 2009, according to a Wall Street Journal article today. In some cases, employers are being quoted premium increases that are double what they were just a few months ago.
Terry Neese, NCPA Distinguished Fellow and small business expert, says small businesses make up 99.7 percent of all independent companies, and are the backbone of the economy. So, she says, the potential of such huge premium increases could be devastating to the economy.
There are solutions, Neese says.
"Corporate America and Labor Unions can purchase health insurance across state lines, but small business owners are not allowed," Neese said. "That law should be changed. Small business owners are already struggling with health care costs, and higher premiums in this economy would definitely be a blow to our bottom line."
According to Neese, allowing small businesses to ban together across state lines for their health insurance needs would increase competition, offer more choices in health coverage, reduce the cost of health insurance, and make health insurance more portable.