Insurance Companies Tell Small Business “You’re Too Old and Expensive.”

First it was banks ripping off small business by raising credit rates and fees in advance of laws going into effect that Congress passed against the unethical and probably criminal practices the law was to prevent happening. The big banks thumbed their noses at Congress and the President and did it anyway while the politicians continued to look the other way at billions in lobbying and donations from these same houses of finance.

Now it seems that the insurance companies have decided to follow the same plan. An article by Reed Abelson in Sunday's New York Times reports that "as Congress nears votes on legislation that would overhaul the health care system, many small businesses say they are facing the steepest rise in insurance premiums they have seen in recent years."

Ms. Reed states that small businesses are seeing their premiums rise and average of 15% for the coming year which is double the rate of last years increases. Because big companies have more negotiating clout, their increases are generally not as steep.

So, what do you think? Are these double digit, double rate increases the result of rising medical costs. Or, do you think like I do and like many medical insurance experts think?

Insurance companies are playing the same game as the banks. They see that their feeding at the trough is going to be curtailed so they are simply bowing to Wall Street pressure and and raising premiums to get ahead of any legislative changes that may curtail their profits.

Illegal – no.

Unethical – you're damn right!

So, are you going to do something about it? Google the contact information for your Representative and Senators. Call or write them and tell them that the backbone of American business is being slowly squeezed to death by Wall St. bankers and insurer and that we've had enough. 

Or,you might be hearing the news that Walter Rowen, who owns Susquehanna Glass in Columbia, PA was told by the insurance companies. Since small companies can't join a large pool for their insurance, they are at the mercy of the companies for pricing. Mr. Rowen was told his two dozen employees were getting too old and very expensive.

They demanded a 160 percent rate increase. He ended up having to get less of a plan than they had enjoyed before and pay a 44 percent increase.

You and your company could be next.

Read Ms. Abelson's entire article here.

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