Health Care Expense Management Taking its Difficultness

In the business world even a small business owners are facing the expense management and it always makes a challenge to the owners especially in now a days. One of the expense of the company is concerning the benefits that the company can give into the employees that they have some of them are the help benefits. In the any kind of the it is really required to have the health benefits for their employee but in the result some of the company are hard to handle for the expenses that they have.

According to the Affordable Care Act, companies with 50 employees or more now find themselves required to provide those employees with health insurance. For most of the business companies heads find this as a major problem in saving money especially if they are experiencing uncertain in the business.

Here is the article that I have read from Certify Blog that giving the best expense management online.

Rick Levi, a business owner in Des Moines, Iowa, was recently profiled in the Wall Street Journal because he is one example of an executive who can't find the funds to make ends meet under the new Obamacare mandate. Levi is 62 years old and struggling to keep his enterprise in business. The rise in healthcare costs certainly won't help, he told the newspaper - the premiums for all his employees will exceed half a million dollars, and he doesn't have that kind of money.

"I've never made a profit in any year of the company that has surpassed that amount," Levi said. "I don't make enough money."

For Levi and business owners like him, the alternative method is to pay a fine. Obamacare dictates that non-paying employers will be forced to hand over $2,000 for each full-time employee past a threshold of 30 - for Levi, that would mean a $144,000 penalty instead of $500,000 for providing insurance. It's a no-brainer.

It's no surprise that healthcare costs have been such a tremendous detriment to businesses' finances, as medical expenses have gone through the roof. According to data compiled by Bankrate, the rise has been sharp for two decades now - the average cost of healthcare was $2,854 per person per year as of 1990. By 2000, that number had risen to $4,878, and in 2010, it was a whopping $8,402.

Overall economic growth in the United States is not keeping pace with healthcare inflation. The yearly inflation rate between 2000 and 2010 was around 2.4 percent, while healthcare costs rose at a 6 percent clip, compounded annually.