Fewer jobs have health plans  
By JERRY GLEESON   THE JOURNAL NEWS   (Original publication: September 10, 2004)

The number of jobs providing health insurance in the United States has fallen by at least 5 million since 2001, and the drop in the number of small businesses that offer such insurance is a likely factor in the decline, according to a national survey released yesterday.  About 68 percent of companies with staffs numbering three to 199 offered health insurance in 2001, and 63 percent of companies did so this year, said the annual health benefits survey conducted by the Kaiser Family Foundation and the Health Insurance and Educational Trust.

The random survey of more than 3,000 private and public employers found that premiums for employer-sponsored health plans increased by 11.2 percent this year. It was the fourth straight year of double-digit increases, but somewhat less than last year's average increase of 13.9 percent.  For family coverage, average annual premiums reached $9,950 this year. For an individual, the premium cost was $3,695. Drew Altman, Kaiser's president and chief executive, predicted that the share of Americans with company-sponsored insurance would continue to fall if costs keep rising at the present pace.  
"The cost of family health insurance is rapidly approaching the gross earnings of a full-time minimum wage worker," Altman said in a written statement.

In the northern suburbs, industry observers said they were unaware of any small companies that had discontinued health coverage for workers. Many small companies, however, feel increasingly strapped by the size of the premiums.  
Manuel MuNoz, a broker with MuNoz and MuNoz of Eastchester, said one client with 12 employees is paying more than $200,000 a year in coverage. MuNoz said some small businesses are considering self-insurance to lower their costs.  "The demographics have to fit right, but if it fits right, it works," he said.

Al Samuels, president and chief executive of the Rockland Business Association, said the health costs are part of a larger pattern of increasing expenses that companies have to deal with in New York, expenses that include higher taxes and litigation costs.  "Take a look at companies that drop pension plans because they can no longer afford them," he said. "The cost of any decent (health insurance) plan is excessive."  
Other small companies say they are willing to absorb increases in insurance in order to attract and retain talented staff.  At Carl Zeiss SMT Inc. of Thornwood, which sells and services electron microscopes, the company pays 85 percent of medical and dental premiums, said Beth Bressan, director of human resources and administration. The company's medical premiums increased just 5.5 percent this year, although it has seen much sharper increases in the past, she said. The company employs 65 nationwide, including 15 in Thornwood, she said, and the skill sets of the staff are important in Zeiss' technical field.

"It is very costly, but we want to be competitive," Bressan said.  The Kaiser report said that the percentage of premiums paid by workers is statistically unchanged over the last several years, at 16 percent for single coverage and 28 percent for family coverage. Cost-sharing, including deductibles and co-pays for drugs and doctors' visits, rose modestly this year, the report said.  The study found that 14 percent of all companies offered health benefits to same-sex couples, and 12 percent offered benefits to unmarried heterosexual couples. Companies with 5,000 or more workers were more likely to offer benefits to same-sex couples than smaller businesses.
Reach Jerry Gleeson at jgleeson@thejournalnews.com or 914-694-5026                                                                                                         Page views:  since   9/17/04