Health Insurance 

Small businesses grapple with health reform insurance provisions

Partner: 
San Francisco Chronicle
Ventura County Star
Summary: 

Health reform will offer special incentives to small businesses who continue coverage for their employees – tax cuts covering up to 35 percent of their costs. But that’s of little consolation to many business owners, many of whom are getting rate increases that exceed the tax credits. Some think it’s fishy. (Also published in the Ventura County Star).

Impact Summary: 

Health reform will offer special incentives to small businesses who continue coverage for their employees – tax cuts covering up to 35 percent of their costs. But that’s of little consolation to many business owners, many of whom are getting rate increases that exceed the tax credits. Some think it’s fishy. (Also published in the Ventura County Star).

Results
San Francisco Chronicle: Insurance premium hikes hit small business hard
John Gonzales, CHCF Center for Health Reporting | June 12, 2010
California small-business owners expected to be early beneficiaries of health care reform, with billions of dollars in federal tax relief becoming available this month to help them purchase medical coverage for their employees. But many said the tax credits granted under the legislation have run up against a new hurdle: a spate of rate increases by insurance companies, including 58 to 75 percent hikes levied recently by Blue Shield of California. "That money is going right back to the insurance companies," said Brad Wing, co-owner of the San Francisco Advertiser, who received notice of his 58.3 percent increase in April. "Normally, rates go up 10 to 15 percent and you can swallow it," he said. "But at 58 percent, there's just no way."
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Results
Ventura County Star version
John Gonzales, CHCF Center for Health Reporting | June 12, 2010
California small-business owners expected to be early beneficiaries of health reform, with billions of dollars in federal tax relief flowing this month to help them purchase medical coverage for their employees. But many said the 35 percent credits granted under the hard-fought legislation have run into a new hurdle: a buzz saw of rate increases by insurance companies, including 58 percent to 75 percent hikes levied recently by Blue Shield of California. Sue Haubert, the owner of Beanscene Espresso in Oak Park, called her 58.6 percent Blue Shield hike an “insane premium increase.”
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Results
Impact of "Small Businesses"
Staff | October 26, 2010
“Small Business Health Insurance Rates Soar.” Published June 7, 2010, in the Ventura County Star.  This story focused on rate increases, in some cases as high as 75 percent, to small business health insurance plans. We reported that they came just as the Obama administration announced small business tax breaks to help small businesses provide coverage to their employees. The story compelled each of California’s major insurers to reveal the extent of their planned hikes to small business plans. 
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