Erie Businesses ready for Affordable Health Care Act

Source: Erie Times-News, Pa.文件倉Sept. 29--Mark Sunseri, president of Van Air Systems in Lake City, counts himself as a supporter of the Affordable Care Act.But that doesn't mean he's eager to see his company pay higher rates that many expect to accompany this piece of landmark legislation.And that is why Van Air -- and a long and growing list of other companies -- has grabbed at a lifeline.The company, which sells equipment to clean and dry compressed air and natural gas, was due to renew its health insurance policy in January, and a letter from Highmark suggested the rate increase would likely be substantial.Instead of waiting for the higher bill to arrive, the company renewed its health insurance policy effective Dec. 1, a month before it was due to expire, locking in a lower rate.That means employees who have met their yearly deductibles will have to start over.But it also means that Van Air will face a single-digit price hike, not a hike that could be as high as 30 percent.Jeff Evans Jr., employee benefits adviser for Employee Benefits Resources Inc., said that faced with that choice, many of his clients are renewing ahead of schedule.Deadlines for an early renewal come before actual rates for 2014 will be available. That makes side-by-side comparisons impossible, Evans said.Few employers are happy about the uncertainty."Small companies are confused, scared and angry," he said. "They are not so happy to see me walk in the door. They want to offer benefits, but it has become a hassle."Although he's taking advantage of lower prices while he can, Sunseri isn't arguing the value of what many call Obamacare."I am concerned about the potential 30 percent increase next year, but I am trying to be positive about the whole thing," he said. "I think covering or attempting to cover 50 million people is a good thing."And he's hopeful that over time rates will fall as more healthy people are added to the insurance rolls.Ralph Pontillo, president of the Erie-based Manufacturer & Business Association, isn't sure that's a good bet, however.He said the health-care law is premised on "having a vast amount of healthy, young people who don't use health care subsidizing older people who do use it."While存倉the Affordable Care Act requires most people to purchase health insurance, there's a modest $95 fine for those who don't purchase in the program's first year.Pontillo said, "As long as there is an opportunity, I think most young people would pay the fine and call it a day."At Tool-All Inc., a precision mold maker on West 30th Street, general manager Michele Farrell said the company opted for an early renewal instead of waiting for January, when certain provisions of the Affordable Care Act would be in effect.Farrell said the company absorbed a 12 percent increase, avoiding an increase the insurance company said could be as high as 60 percent.Farrell said the company's owners have long made good health-care coverage a priority. Under the current plan, employees pay one-third of the premiums for a plan with a zero deductible.A survey of company employees indicates maintaining the current insurance plan is a top priority, Farrell said.But that could come at a price, she said."If the rates go up, we would have no choice but to increase the amount the employees pay," she said.Evans said he's seen a few companies adjust health-care plans in advance of the Affordable Care Act. One small manufacturing firm, he said, had picked up the entire cost of a zero-deductible plan. In 2014, employees will pay 10 percent of the premium for a plan with a $500 deductible.Farrell said she thinks there are few enthusiastic fans of the health-care law in the business community, but lower-than-expected rates announced last week for the Pennsylvania Health Insurance Marketplace have encouraged some.Pontillo, however, said that uncertainty about the coverage offered by those plans makes it difficult to make comparisons.The bigger problem is that the rules are still being written and interpreted."We don't know what the rules are yet," Pontillo said. "We have hired some of the best consultants in the country, and there are things they don't have guidance on."JIM MARTIN can be reached at 870-1668 or by e-mail. Follow him on Twitter at twitter.com/ETNmartin.Copyright: ___ (c)2013 the Erie Times-News (Erie, Pa.) Visit the Erie Times-News (Erie, Pa.) at .GoErie.com Distributed by MCT Information Services儲存