Overheard today at my small family local produce store

[JDPriestly]

There is a fairly new shop in our district in Los Angeles. It is run by an extended family that just happens to have a lot of sons. It sells wonderful, locally grown vegetables and fruit (some of which is organic), locally hatched veggie-fed eggs and even grass, range-fed beef and other great things. That's not remarkable in some places, but in our lower income neighborhood, it's just wonderful.

Today, I was picking out some vegetables when the owner announced, "Yesterday was a historic day." The two of us who happened to be in the vegetable aisle at the time stopped shopping and looked at him. I wondered what he was talking about. Had he served his 10,000th customer or something. Then he said, "The health care reform bill was passed which means I can get health care for my employees." He then explained that he is has been covered by a certain company, but that, recently, that company raised his rates so high that he was going to have to stop the coverage. Now that this reform bill passed, he believes he will be able to find something more reasonable.

I hope he is right and can actually find a better insurer. I am very disappointed that the bill does so little to lower insurance costs. It could at the very least have a public option or immediate rate increase limitations.

But my grocer reminded me that for a lot of people, this bill is the answer to a prayer.

[CaliforniaPeggy]

1. What a powerful message!

Here is someone you know who will be directly and positively affected by this bill...

I am encouraged to hear this!

Thank you...

[Cicada]

2. subsidies for small employers begin immediately - 2010

look at the section on small business tax credits - fits your example to a Tee

http://docs.house.gov/energycommerce/SMALLBUSINESSES.pdf

[Abq_Sarah]

4. Thanks for the link

If the economy rebounds and we make larger profits, small businesses will be better positioned to purchase insurance. But, as I mentioned in my earlier post, we have to have the money available first to pay the premiums before we can get the (up to) 35% tax credit. It sounds like a great deal but it doesn't help the businesses that need it the most. A full economic recovery is what we need to provide higher wages and benefits.

[Abq_Sarah]

3. Ummm

The exchanges won't be formed for another two years and the subsidies don't kick in until 2014. I believe the small business tax credit starts 6 months after the bill is enacted but if he can't afford it now, I don't think it will be much help since there are no price controls to keep the price of policies from rising once the insurance companies are forced to provide more mandatory services. A tax credit is really only effective if you actually have the money available to pay today.

[pnwmom]

6. Right now there is no limit on how much an insurer can charge to a small group

with a member who has a preexisting condition. One sick employee can make the premiums skyrocket for the whole group. There is also no limit to the profit/overhead that can be charged. The new bill will require that most of the premiums go toward actual medical expenses -- not profit or overhead.

The CBO figures predict that premiums will drop about 10%, but that's overall. The drop could be much higher for small groups that are being charged exorbitant rates due to one sick employee.

And if insurers continue to rack up excessive increases, they're just asking for the government to step in again with a public option or even Medicare for all.

[Abq_Sarah]

7. And now that insurers

Are mandated to offer specific coverage they probably didn't offer before (depending on the state) the prices will increase.

As far as I know, they can still charge more depending on the age and the health of the people in your group.

[pnwmom]

8. They can charge more based on age but not health. And the gap between the

lowest and highest premiums (assuming the same coverage) will be much narrower than it is now.

[Hannah Bell]

10. if they can charge more for age, seems an incentive for employers not to hire older people.

or to get rid of them.

[pnwmom]

11. That's already the case. With the new law, the disparity between the cheapest

employees and the most expensive will be greatly narrowed.

[Hannah Bell]

13. how so?

[pnwmom]

14. By law. n/t

[Hannah Bell]

16. no, in what sense does it narrow the gap?

[Abq_Sarah]

It's absolute age discrimination

Given the seal of approval by our Congress.

My healthy 55 year old husband can be made to pay 3x more than a 30 year old overweight type II diabetic.

[pnwmom]

15. Congress has REDUCED the age discrimination. The difference is much greater now. n/t

[Abq_Sarah]

20. Well, whoop-de-freaking-do

It's nice to know there is still one type of discrimination supported and legalized by the congress and our President.

[pnwmom]

22. I think it's unrealistic to not recognize that older people are more subject to

health problems. Even a seemingly healthy 55 year old is much more likely to drop dead of a heart attack tomorrow than a healthy 25 year old. That's what the "discrimination" recognizes.

[Abq_Sarah]

23. Just as its unrealistic

To recognize people with pre existing conditions cost the system more?

[pnwmom]

5. If he had even one employee with a preexisting condition, that could have meant

the rates would have been extremely high for his whole small group. The new law should help with this, since it limits the amount a insurer can charge no matter what the person's state of health.

[Abq_Sarah]

9. No

There are no limits to the insurer. There are no built in cost control measures.

[pnwmom]

12. Not true. They will be limited in the differential they can charge policy holders.

The hope, obviously, is that competition -- under new rules -- will pressure insurers to keep their rate increases down. If they don't, they can expect more regulation, or a public option or single payer. This is their chance to put up or get out.

[lame54]

21. plus the grocer gets tax breaks

[notesdev]

17. He'd better keep praying

as this is going to cause rates to skyrocket over the next few years as the insurers seek to lock in the highest possible "base" rate before the law kicks in.

He as a business owner is better off not insuring anyone (not even himself) under this law, to simply pay the fine and pocket the change. Should anyone get seriously ill, sign up at that time but not before.

[Bitwit1234]

18. Does't this bill give a sort of discount to small business so they

can afford insurance for their employees. I saw it some place and I think it takes effect soon and not in 2014.

[malaise]

19. How can this be

It's all bad. I read that on DU. :sarcasm: