Health insurance price increases will hit small business contractors hard next year. A Pennsylvania contractor earning $100,000 per year will pay about $350 more per month.
I’ve already heard from Pennsylvania contractor clients facing rate increases of $750 or month and a NJ contractor with more than $1,000 hike in his monthly bill for family coverage. We can’t directly reduce the cost of insurance under this highly regulated environment imposed by the Affordable Care Act. However, there are a number of cost-saving measures that can be taken around health care to reduce taxes and balance the added cost within the individual or small business financial plan. Contractors may want to consider the costs, benefits and risks of strategies like tax free reimbursements, supplemental insurance, alternate sources of emergency medical funds and asset protection for catastrophic claims.
Chronic medical costs contribute to the bankruptcies of more small businesses than any other difficulty. We must consider the possible impact of these extraordinary costs for likely lifelong health care costs.
I offer a free no-obligation consultation to self-employed contractors and small business owners to explore what options are available to help manage health care costs. Members of the National association of the Remodeling Industry are eligible for greater benefits.