Greater Midwest Mercantile | Eau Claire, Wisconsin

Exchanges Will Help Family-Run Business Regain Group Coverage

Lani Madis
Greater Midwest Mercantile
Eau Claire, Wisconsin

Founded in 1982
Full-time employees: 2

As Greater Midwest Mercantile approaches its 30th year in business, the anniversary seems bittersweet. In 2009, owner Lani Madis realized she could no longer afford health insurance for the store’s full-time employees—her son and daughter.

Since opening the store in 1982, Lani has been dedicated to purchasing health coverage for her employees. But in 2006, healthcare realities began to set in and by 2009, Lani and her employees were shut out of the market due in part to an uncontrollable circumstance: her daughter has a preexisting condition. But for Lani and small business owners like her, relief is around the corner. The Affordable Care Act’s 2014 health insurance exchanges should help small business owners access coverage that won’t bleed them dry.

“Costs were astronomical and at that point you say ‘NO.’ I would rather increase their base pay than pay for coverage.”

Three decades ago, Lani and her husband moved to Wisconsin from the rolling hills of California’s East Bay Area. In just a year, the hardworking couple had opened the coin, gun and jewelry shop now run by their son and daughter. Having provided employees with health coverage since its opening, it was difficult to swallow costs when Lani saw premium rates increase by 18% in 2006, 26% the year after and a staggering 40% in ’08. Lani’s son’s deductible increased from $250 to $2,500—with a $537 premium.

These increases weren’t even the first of the group’s problems. When Lani hit 65 she became age-rated, driving up group costs and leaving her with no choice but to drop out of the plan and get Medicare. Additionally, her daughter had a preexisting condition that jacked up the group rate. These circumstances put Lani in a position no business owner, let alone parent, should have to experience. After 27 years, she discontinued coverage.

While her son found it relatively easy to obtain individual health insurance at a reasonable price, Lani’s daughter’s health history prevented her from accessing affordable coverage. Luckily, she married a man with comprehensive family coverage and is now insured. But Lani’s ability to provide the coverage she prided herself in offering is gone.

“It’s a small family business—we’re talking about my son and daughter.”

In 2014, circumstances like Lani’s should no longer hinder access to affordable coverage. When the Act is fully implemented in 2014, insurers will not be able to deny coverage or increase rates based on preexisting conditions. Also, small groups like Lani’s will be able to pool with other small groups, lowering costs through collective buying power. 2014 will mark the 32nd anniversary of Greater Midwest Mercantile. Lani and her employees should have good reason to celebrate.