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Why Are Small Businesses Dropping Health Insurance

 

The fallout from a drooping economy has been fairly continuous over the last few years. This has hurt employers and employees and have left many with the question of why are small businesses dropping health insurance. Each case is a little different, but here are two main reasons for the occurrence as well as some advice as to how you to deal with it. 

 

Revenue Shortfalls Lead Small Businesses to Drop Health Insurance

Health insurance is an expense and when businesses, especially small businesses, find themselves in a situation where the money isn't coming in as much as it used to, expenses must be cut. Most companies will seek out ways to cut other expenses, but as time goes by and business doesn't pick up, companies have to start looking at employee health insurance. The economy has been tough on small and big businesses alike. Small businesses generally have less room for error and are more likely to drop health insurance for employees during hard economic times.

 

Rising Health Insurance Costs Lead Small Businesses to Drop Health Insurance

A slowed revenue stream coupled with a significant increase in the cost of health insurance has produced a perfect storm against small businesses. The increased cost coming at a time of reduced revenue has forced many small businesses to choose between laying off employees or dropping health insurance for employees. It is a tough decision to make, but one that must be made nevertheless.

 

Your Rights as an Employee if Your Health Insurance is Dropped

If you currently have health insurance through your employer or have recently had it dropped from your employee benefits, you do have some rights in most cases. Most states have guidelines concerning the notice to be given. Generally, your employer will have to give you a notice of anywhere from 30 days to 60 days before the health insurance can be terminated. Check with your states Department of Insurance to get the specifics as well as other laws regarding cancellation of group health coverage. 

 

How to Deal With Losing Your Health Insurance

Hopefully, you will get a notice from your employer so that you can begin looking for other alternatives. Your first thought may be to look for a job that offers health insurance benefits, but in the current economy that may not be feasible. What you can do, though, is use your notice time to shop for health insurance on your own. You can find affordable health insurance with an individual or family plan. If you are in good health, have kept your health insurance current, and get regular checkups, this shouldn't be that big of a deal.

Take about 15 minutes to get online and gather some rate quotes. You can use these quotes to compare prices of plans and costs from company to company. The quotes are free and can help you learn a lot about health insurance plans and how they fit into your new budget.

 

 

 

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