An annual
California Employer Health Benefits Survey show that California health care costs are on the rise and the benefits are shrinking. According to the survey, the cost of employer sponsored health plans have risen 153.5% since 2002. This is 5 times faster than the increase of California’s inflation rate.
The survey also indicated that 36% of California firms said they were likely to raise the amount their employees would pay in 2012.
How does California compare to your state?
Click here to read the full article.
Note: This should not be taken as tax or legal advice
The health reform law requires employers (with more than 50 employees) to pay a penalty of $2000 per employee (which is substantially less than what they spend on employee health benefits) if they choose to cancel health coverage after 2014.
- 20% of companies with 10-499 employees plan to cancel their health plans in 2014.
- 6% of large employers (companies with 500+ employees) plan to cancel their health plans in 2014.
It is likely that
100% of small employers (companies with less than 50 employees) will cancel health plans in 2014 because small employers are not subject to a penalty.
Click here to read the full survey release.
Last month,
Kaiser Family Foundation released a survey of people who purchase their own insurance.
Of those surveyed...
- 45% said the primary reason they purchase coverage in the individual market is due to being self-employed or a small business owner.
- 16% said their employer doesn’t offer insurance.
- 6% said the employer offers insurance but it would still cost them too much to be covered.
- 3% said they they don’t work enough hours to qualify for their employer's health insurance.
The below chart summarizes the findings.
