how important is health insurance in your business plan? (deductible, income)

[cgregor]

I live in a state that is working toward a tax-based universal, affordable, accessible and equitable health care system for all, such as exists in all the other First-World countries. It will be provided regardless of pre-existing conditions, have no deductibles, have a standard co-pay for both services and medications, and cover all household members even if they lose their jobs for any reason. One estimate was that it would take a 14% payroll tax to cover all state residents not covered by Medicare, Medicaid or Tri-Care (for which it would be the secondary insurer).

One of the arguments supporting it is that there are quite a few people ready to quit their job and start their own business, but they are held back by the matter of insurance costs for both themselves and their employees.

So, I'm curious as to how many employers or would-be entrepreneurs would pull up their roots and move to a state that offers such insurance coverage for a 14% payroll tax. If you're one of those people, let me know.

[Dakster]

And you picked to ask this in the Alaska Forum, because?

[JasonAnc]

^His post history indicates that he's cross posting this in various forums. He's talking about Vermont, not AK of course.


And my answer is it would definitely be a big plus, and possibly even a deciding factor... And I say that as someone who is genuinely in the process of relocating states (in 2 weeks), with the full intention of starting a business in the new state.

And as it were, I'm going from a state with costly and lousy access to healthcare for my family (FL), to living in one that qualifies my AK native gf and 6 month old daughter for virtually free care. It is definitely one of our primary reasons for relocating, which I would put like this...

1) Better economic opportunities for us both. (We're moving from Tampa, which has the absolute lowest prevailing wages of any large city in America)
2) Existing family and friend connections in new state equal to or better than current state
3) Our healthcare will be far less costly, since I'll only need it for myself



Anyways... It seems like it would be quite a bit simpler to run a business where you don't have to mess with your own healthcare or employee healthcare, you can just put your time into running your business better. I bet it would be a pretty big deal in certain industries where the employees typically call out sick, but can't afford to go to the doctor, and get treated and get back to work more quickly. I used to work in corporate HR for a big staffing firm. You would be amazed the way something like knowing you'll have to go to the doctor if you call out, helps prevent people from ever getting sick in the first place.

[jdhpa]

I hope it works out for Vermonters, but I'm skeptical. 14% of income is a lot of money. I would expect young, healthy people who believe they're unlikely to need expensive medical care any time soon to move out of the state and take equivalent jobs where they can keep that money for themselves. But those are the people Vermont needs to stay to pay for the people with current medical needs.

At any rate, Happy Thanksgiving to everyone! Have a happy and safe holiday

[cgregor]

Thanks for the replies, people!

[Dakster]

Funny JasonANC - I moved from Florida to Alaska this past summer.

14% additional payroll tax is gonna be interesting on businesses. And I also don't think it is fair across the board, because I could start a business and not make a lot of money and therefore not pay a lot for healthcare vs. someone else that makes a lot and pays a lot. Unless I am misunderstanding something.

[raj kapoor]

Originally Posted by Dakster

Funny JasonANC - I moved from Florida to Alaska this past summer.

14% additional payroll tax is gonna be interesting on businesses. And I also don't think it is fair across the board, because I could start a business and not make a lot of money and therefore not pay a lot for healthcare vs. someone else that makes a lot and pays a lot. Unless I am misunderstanding something.

I think you are astute. You have realized that trying to make a level playing field when the field is not inherently level is going to be supported by two classes of people. Takers and givers. (which encourages more of the former) I personally believe in being self-sustaining.

[JasonAnc]

^It's still a net gain, because many of the 'takers' are already on Medicaid or whatever.

It's not worth making all of the people who would be more productive go without, so that we can indirectly "punish" the takers for lacking ambition and drive, because they always will, no matter what the rules are. For every 'taker', there are several people out there who if they had better access to medical care, would in fact be healthier and more productive than they already are.

[cgregor]

Thanks for the comments!

[jdhpa]

Originally Posted by JasonAnc

... so that we can indirectly "punish" the takers for lacking ambition and drive, because they always will, no matter what the rules are.

I don't think anyone wants to "punish" anyone for their personal choices. However, paying 14% of income will require people to make sacrifices, both for themselves and their families. And while people may be willing to sacrifice for others who aren't able to work and provide for themselves (either temporarily or permanently), I would expect many people to not want to sacrifice for able-bodied adults who can work and support themselves if they want to, but simply choose not to. Freedom of choice, and accepting the consequences of choices freely made, go hand in hand.

Just my $0.02. We'll see what system Vermont comes up with, hopefully they'll find a way to balance all of these considerations and provide good health care to all of their citizens without affecting peoples' non-health care related standard of living.