Small business owners and entrepreneurs throughout the US are facing impossible choices because of the skyrocketing costs of health insurance premiums, and, in many cases, the lack of access to coverage. Here are some of their stories.
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Tulsa Rib Company: Orange, CA
Health insurance exchanges give California restaurant owner hope that relief is in sight
Steve Parker
Tulsa Rib Company
Orange, California
Founded: 1981
Employees: 14/15 full-time
Tulsa Rib Company owners Steve and Liz Parker have been committed to doing right by their employees since they started their rib joint in 1981. Part of that means no matter what the costs, they’re determined to pay for their employees’ health insurance. In an industry where the majority of restaurateurs don’t provide coverage, the Parkers struggle to maintain a competitive and profitable company in spite of soaring healthcare costs.
“When we have to include these costs now, we’re automatically at a competitive disadvantage,” Liz said.
“Without the prospect of insurance exchanges, we would be forced to drop our health insurance coverage.”
After the restaurant’s premium rates skyrocketed in August 2010, Liz switched to a new plan and a new broker, which provided a nearly $40,000 drop in her annual rate. It’s a big help, but just not enough after a decade of 20 to 50% premium increases.
“When we opened our doors, and for our first 20 years in business, health insurance was something we could provide for our employees. Now it’s becoming the difference between being profitable and having this single expense lead to the company’s demise,” Liz said.
She believes things will vastly improve once California sets up its health insurance exchange in 2014. The exchange will give small business owners the kind of clout larger businesses have when shopping for coverage, which will lower their overall costs and increase their choices.
Without the exchanges, Liz said, “we’d have to drop our coverage.”
