Obama: Businesses Being Crushed By Health Care Costs

I recently heard from a small business owner from New Jersey who wrote that he employs eight people and provides health insurance for all of them. But his policy goes up at least 20 percent each year, and today, it costs almost $1,400 per family per month – his highest business expense besides his employees’ salaries. He’s already had to let two of them go, and he may be forced to eliminate health insurance altogether.

He wrote, simply: "I am not looking for free health care, I would just like to get my premiums reduced enough to be able to afford it."

Day after day, I hear from people just like him. Workers worried they may lose their coverage if they become too sick, or lose their job, or change jobs. Families who fear they may not be able to get insurance, or change insurance, if someone in their family has a pre-existing condition. And small business owners trying to make a living and do right by the people they employ.

These are the mom and pop stores and restaurants, beauty shops and construction companies that support families and sustain communities. They’re the tiny startups with big ideas, hoping to become the next Google or Apple or HP. And, as shown in a new report released today by the White House Council of Economic Advisers, right now they are getting crushed by skyrocketing health care costs.

Because they lack the bargaining power that large businesses have and face higher administrative costs per person, small businesses pay up to 18 percent more for the very same health insurance plans – costs that eat into their profits and get passed on to their employees.

As a result, small businesses are much less likely to offer health insurance. Those that do tend to have less generous plans. In a recent survey, one third of small businesses reported cutting benefits. Many have dropped coverage altogether. And many have shed jobs, or shut their doors entirely.

This is unsustainable, it’s unacceptable, and it’s going to change when I sign health insurance reform into law.

Under ...

Category:

News & Politics

Tags:

• Obama
• healthcare
• insurance
• doctor
• medical
• nurse
• business
• premiums

[radovichhillary]

cool video .. good job !!

[tonjakaye]

Hospitals are allowed to charge how they wish however they set up different prices depending on the insurance company. Say you have a $3,000 bill and your insurance will only pay $500 of that. The hospital takes the $500 and you are left with either your deductible or your co-pay as well as whatever you pay monthly. Your bill is reduced by $2500 thanks to your insurance. If you don't have insurance and get a super high bill you can ask the hospital for charity pay or a discount. Be nice about it

[louis12346]

We need to stop all 30,000,000 young workers from eating junk food ,Sugar , Salt , & Beer , Pizza THEY have to WORK hard to Pay for our free Health Care , taken out of their pay check

[SynthFanKH]

Apparently not allowing insurance companies to drop customers or reject people with preconditions is supposed to bring costs down? I'm wondering how that's going to work out.

[Elhardt]

And yet in all this health card debate I haven't heard any mention of the insane price gouging of hospitals. They charge orders of magnitude more than their goods and services are worth which is what's pushing people into bankruptcy and/or financially ruining people for life. Nope, Obama just wants to hold a gun to people's heads and force them to pay for our criminal bloated medical system as it is. So much for reform.

[musclecarpower]

Well your the one we elected now do something about it and quit passing the buck.

[phxfreddy]

OBAMA is Bush on steriods! Owned and operated by Goldman Sachs

[NotaBeetleFan]

Not to mention all that HOT AIR and CO2 coming out of his mouth. ;-)

[eduardalet]

responsibility lies with corrupt lawyers who will sue anyone for a quick buck. They should be put out of business by decree and not the small business owner. I talked to my dentist and asked him what's going on here , a root canal for $1400 per tooth so I went to Colombia had a nice vacation and the root canal cost me $100. That's what the prices should be pushed to , since that's what big business wants to do with our salaries.Thanks. Good job Barack Obama at least you tell like it is.

[riidinghard]

There's no such thing as free lunch.