 | Butch Porter, principal at Goose Creek Financial in Leesburg, says, ‘I don’t think anyone really, really knows how it’s going to affect them.’ Times-Mirror Staff Photo/Raymond Thompson |
Sterling business owner Walter Hancock knows a little something about extending a helping hand.
When his 47-year-old brother, Russ, was laid off from his printing industry job, Hancock gave him a job as a subcontractor at his company, Genesis Solutions.
But, after teleworking for the company for only eight months, Russ fell ill in August 2009. He had no health insurance because Genesis, a technical services consulting firm in Dulles, does not provide coverage for its subcontractors. The hospital admitted him anyway because he was so bad off, Hancock said.
Russ was later diagnosed with liver failure and given a 5 percent chance of survival. But because he was without insurance, the hospital only had funding to provide care for 28 days. At midnight of the 28th day, Russ was out the door, Hancock said.
Within a few weeks, Russ was admitted to another hospital even though he still was unable to obtain insurance. He died three months later.
Health-care provisions
The health-care legislation signed by President Obama last month is meant to protect people like Russ from being denied insurance because of pre-existing conditions.
Additionally, there will be greater obligations for businesses – like Genesis – to provide health-insurance coverage, according to Leighton Ku, professor of health policy at George Washington University.
Small businesses that have low-wage workers will get tax credits to help them purchase insurance for workers, Ku said.
Russ had a major health problem, but he didn’t have employer health care at the time of his illness.
“The outcome of his incident was the worst possible impact it could be,” Walter Hancock said.
Hancock’s hands were tied because, as a business owner, he couldn’t provide insurance for Russ. He had hoped the first hospital and insurance companies would have been more sympathetic to his brother’s needs. But, he said, the insurance companies wouldn’t touch Russ with a 20-foot pole because he had a pre-existing condition.
“It’s not just about legislation and dollars, it’s about mentality and people.”
Solutions unclear
As a business owner, Hancock doesn’t believe a government takeover of the system is an encompassing solution.
“As a business owner, I am also unsure exactly how it’s going to affect us, except for the fact that I am sure it is going to cost us more money,” he said.
Hancock believes it should be a company’s responsibility to provide 100 percent of its employees’ health care. Genesis is now looking into providing health insurance for all seven of its subcontractors—on top of what it already provides for its three full-time employees.
Although the bill was signed into law a few weeks ago, business owners around the county still aren’t sure how it’s going to change their bottom line – if at all.
“I don’t think anyone really, really knows how its going to affect them,” said Butch Porter, principal at Goose Creek Financial in Leesburg. “There are a lot of open-ended questions.” Those questions include whether the tax incentives in the bill will bring down their costs.
When large businesses such as insurance companies are mandated to provide a service, their bottom line takes a hit, Porter said. So insurance companies shift their cost structures and small businesses end up paying more, Porter said.
“Everybody’s rates will go up,” he said. “If individual rates get more expensive, then group rates get more expensive. I see no good news for small businesses, frankly.”
Changes for employers
Employers are the main providers of health insurance. So some of the requirements will go up for them, such as extending children’s benefits under parents’ plans. Employers may absorb some of the higher costs in cases like that, and they may pass some along to employees, Ku said.
At Radiance salon and medical spa in Lansdowne, Business Director Carolyn Severo said the company’s insurance premium increased 42 percent last year, while its revenue decreased. To deal with expanding premiums, Radiance, which employs 65 people, has changed insurance companies nearly every other year since 2003.
“The current situation is bad and I don’t know how the law is going to change that,” Severo said. “There’s no doubt that the system’s broke, but I don’t think the government’s the one to fix it.”
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We have had and should have a safety net for folks, so that they don’t go without treatment. However, there should be personal accountability too. That is, people need to plan for layoffs and other economic disruptions and set money aside for extended healthcare benefits under COBRA and by other means if necessary, the same as one needs to put money aside for their mortgage, so that they don’t go to foreclosue. If one can’t afford to put at least 6 months of an emergency fund together, then they shouldn’t have bought the house to begin with and the same personal responsibility on healthcare should also be expected, however, the Progressive Socialist that voted for the healthcare bill prefer to create the perfect nanny state.
Obama was wrong by focusing on giving people health care. It was good that he made health care provisions by helping the people who have had existing conditions. Any reasonable person would have to agree with that. But he should have focused on boosting the economy and making jobs. If business’ have work then they will become competitive with each other to keep their employees and therefore provide better benifits. And I’m not talking about these temporary census government job that Obama is so proud of, I’m talking about private sector jobs. Marchpast, you should take a look at all the democrats out here in California. Not only are they connected and getting kickbacks from corporations, they openly waste the tax payers money for their own needs and causes. Thats why this November their time in office will come to an end. John Merit, it’s bad enough that the people were gullible enough to vote Obama in office. The worse part is that so many people are still gullible and still believe in him.
“Business owners confused and uncertain about health care”
Well, of course the are. The industries which resisted HCR legislation in an effort to protect the status quo spend more than $1,000,000 a day to muddy the waters and confuse our citizens.
They got what they paid for.
“Hancock believes it should be a company’s responsibility to provide 100 percent of its employees’ health care.”
I couldn’t disagree more. Our current system of employer provided health care came about from wage controls enacted to curb inflation during WWII- businesses couldn’t legally give raises to their employees ..... but they could add the extra perk of health care.
This expectation of employer provided care was an unintended result of war policy and is unique to the United States, which under our newly enacted HCR laws will still be the only industrialized nation which allows corporations to profit from its’ citizens basic health care.
Unfortunately, the insurance industry has been unregulated for too long and they will adjust premiums to make money. Health care that are non-profit facilities cannot afford to take care of everyone which affects the cash payers rates. Obama is really trying to overhaul the system but why are so many uninformed people resistant to change. They are listening to their congressman who doesn’t want to lose his financial support from ins. companies so they want to leave things as they were and let the low income and middle income people pay. Everyone wants cadillac coverage but don’t expect to pay more and don’t want the government to interfere and see that they get a reasonable premium rate. If the insur. co. wanted to be competitive, they could have done it in the past. What do they do…but raise their premiums like BCBS with a 40% increase prior to the new law. We need price control…doctors and hospitals should post the rate for various procedures, PBM’s don’t determine the kind and level of treatment you deserve, put specialist physicians on salary, cap lawsuits, make the health care industry a non-for-profit business (where a reasonable profit such as 5-7% over costs would be allowed and be transparent). Why should companies be allowed to be so greedy and take advantage of people’s suffering.
France has a model that we should emulate. How many Americans die every year because they don’t even bother to seek medical attention knowing they cannot afford it. We are ranked 19 in preventable deaths. If we want the best health care, we will have to face the reality of tax increases.
There is no confusion that the health care plan does nothing to control or curb premium costs. As a small business owner of 40 employees, I just received my insurance notice which increases my premium costs to over 35% on June 1st. Business is off over 15% from last year. You do the math. I would agree in part that both parties are corrupt, including the Democrats that bow to some of the same and different corporate masters and the trial lawyers. If ever I have felt without a party to support, it is now. And oh yes on the last point, I completely agree, the public is truly gullible, they elected Obama.
It’s no wonder that there is confusion with all of the outright lies spread around by the Republicans in the service of their corporate paymasters, and the gullibility of the public.
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