A small business owner in Virginia faces a 40 percent cost increase in his company’s health insurance plan.
Wistar Nelligan, owner and founder of Nelligan Insulation, told WSET-VA that "Everybody is confused and nervous" about the changes Obamacare will impose on his company, which was started in 1999.
He enjoys providing health insurance for his 25 employees and says it’s a good plan with good benefits.
They’ve tried putting the premium hike off as long as possible and extending their current plan early. Their insurance policy will expire in December.
When their health insurance plan changes to follow new premium rating requirements under Obamacare , they expect their insurance costs will skyrocket by 20 percent to 40 percent.
"A forty percent increase in our health insurance may mean that we don’t provide health insurance anymore, that everybody [Nelligan Insulation employees] would be on their own. They may have to go to the exchange and get health insurance on their own," Nelligan told WSET.
The health insurance paperwork is piling up and it takes many hours to complete. Donna Bubruck, Office Manager at Nelligan Insulation, tends to the paperwork. "It’s been a nightmare," she said.
A report by the CMS reports that 65 percent of small businesses should expect increases in their premium rates. This will affect 11 million people.
The company is currently trying to find a new health insurance policy with similar benefits and a price tag similar to their previous one, but it is proving to be difficult.