Insurance Rates: 5 States You Don’t Want to Start A Business In

We can’t tell you where to live, but if you’re looking into starting a business somewhere, it may be wise to look into the average insurance rate for each state. The average premium can give you the scope. Group health insurance is a benefit you can’t afford to overlook when it comes to your benefits package. Prospective employees will flock to you when you offer this because when you offer health insurance, you offer peace of mind.

open map of the continental united states
Your location can change your insurance rate a great deal. Make sure to do proper research.

Each state has a different premium, and getting this information can hint at your prospective insurance costs should you operate there. Health insurance costs are growing with a 214% rise in premiums for single coverage and 239% for family. Of course, EZ.Insure’s agents will have a comprehensive view of your specific situation, but let’s look at the most expensive states to live in.

Why These States Have the Highest Premiums (Without Subsidy)

Wyoming at $865

Some good news here! Wyoming actually saw relief from premium increases this year for their insurance rate. However, this was after a 48% rise in 2018. That’s quite an incline. While this explains the higher cost now, it also gives hope for the future that this number could drop on the list.

Wyoming has been fighting for first place in “Who Is the Most Expensive” between Iowa and Alaska. Differing costs in plans fluctuate as cost-sharing reductions are put mostly on medium rate plans. This hampers attempts to curb this by government programs because their influence usually falls to the lower rate plans. 

In either case, Wyoming continues to hold a top-3 spot in the most expensive zone, so not the best state for your company to start. It also doesn’t seem to be getting any less expensive. 

Nebraska $838

nebraska sunset over a field with a fence
It’s beautiful, but Nebraska seems to be an expensive place to live with it comes to insurance.

In Nebraska’s exchange, there is one insurer that has a complete monopoly on the market: Medica. This isn’t a recent thing either. A monopoly means they can charge whatever they’d like, and those that want insurance must buy it.

2019 showed only a 2.2% increase across the Medica board. It seems small, but because the insurance rate is already so high, any increase is only going to increase pressure on the market and business owners, meaning you.

Iowa at $762

The same problem with Oklahoma carries over to Iowa. While over half of Iowan residents receive health insurance through an employer, the other half do through government assistance. This is good for Medicare and employers that can handle the payments for group insurance. However, for those that cannot, it would be a good idea to take a second look before coming here. 

Studies show that businesses in Iowa are going through financial hardship due to these drastic increases in premiums. Percentages of this increase jump wildly through the years with a 19% rise in 2002 to a softer 8.4% rise in 2018. While the rising slows, it should still caution a prospective business owner.

Alaska at $702

This state has a disproportionate population size, and the vast majority of Alaskans live away from the booming cities and markets. What this means is, a lot of people are in remote areas and the road systems don’t reach all of them. This raises the insurance rate because of the danger associated with rural areas.

Coupled with these is a limited amount of medical service providers. If you need a specialist, you may have to travel quite a while to see them, even out of state. These hamper the medical field with more costs and increase the amount the professionals (or specialists) are paid. Altogether, it nets a large increase for your company if you expect to operate here.

Oklahoma at $696

After Alaska (and Texas, not on this list), Oklahoma has a high uninsured rate. This is 13.9% of the populace. With so many people uninsured, it doesn’t leave a good impression for your business here.

Under the Affordable Care Act, this state did not opt into federal funds for expanding health care. This left thousands of people without access. These people continue to go to hospitals when they are sick, putting a strain on health providers.

What does this mean for you? While the insurance rate may be high for your business, offering health care may be an even more attractive choice for a prospective Oklahoma employee. You’ll have to decide whether or not it’s a good idea for your business.

money and medication from health insurance
Medication is needed everywhere. Health insurance is not something to take lightly.

When it comes to your business, your insurance rate is important to your bottom line. Most insurance is required. Others aren’t, but they’re still good to have. These states here show with their health insurance premiums what you can expect in the group world. Have any more questions?

EZ.Insure is there to make sure your business is covered. Your agent will answer any questions you have, compare different plans for you, and even sign you up when you’re ready, free of charge and without having to worry about being hounded by endless calls. To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing replies@ez.insure, or calling 888-615-4893. EZ.Insure makes the entire process easy, and quick.

Healthcare Rates to Rise in 2019

In 2017 when President Trump did away with cost-sharing subsidies, it forced insurers to raise premiums. The cost-sharing subsidies helped pay back insurers for giving customers lower premiums due to their income status. Due to the halt in the subsidies, health insurance premiums have been rising. Mainly for those who have to buy their own insurance, approximately 34% in 2018 for silver plans. Insurers are now brainstorming what they will charge and if they want to participate in the ACA exchanges for 2019.

Insurers have been participating less and less in the market exchange, leaving customers with fewer choices. If more insurance companies decide to pull out of the exchanges, it will mean that customers will have even fewer choices available to them, at higher costs.

Health Insurance rates are increasing next year
Health Insurance premiums and deductibles are increasing next year

Premium Increase

Premiums will continue to keep growing without the cost-sharing subsidies to help with the costs impacted on insurers. The hike in premiums could be as much as 30% for 2019. It is projected that those that will be impacted the most are those who make too much money to qualify for premium support subsidies.

Eyles and Ceci Connolly, president and CEO of Alliance of Community Health Plans both voiced their disappointment of Congress failing to take action to fund cost-sharing subsidies.

“What’s happened is that several pieces of the puzzle have been pulled away. It is hard for me to isolate CSRs, what we are looking at now is a puzzle that is falling apart piece by piece,” Connolly said. “Losing the individual mandate, losing the cost sharing reduction subsidies and losing any hint of reinsurance, not to mention the risk corridors that were already gone, you’re just running out of options to manage the cost of this program.”

Funding

Midterm elections are approaching which brings up the issue of health care. While both political parties will be criticized, the polls have shown that voters hold Republicans more responsible for the high costs. Both parties have come to an agreement to include health insurance funding in the spending law. However, they could not agree on the details of what to fund exactly. Republicans are pushing for abortion restrictions stating insurers can cover abortions but cannot use federal funding for them, while Democrats do not agree.

If the bill receives funding, then hopefully it will offset costs, making it affordable.
If the bill receives funding, then hopefully it will offset costs, making it affordable.

Lawmakers are hoping the stabilization effort of adding funding to the bill will offset the costs of insurance. Health-policy experts disagree on how much it will help. Health experts state that the higher premiums will be offset for people by other subsidies they will be qualified for.

Republicans are not thrilled to stand behind the idea of the stabilization funding. They view it as saving the insurers of the health law, ACA, which they promised voters they would repeal. They blame the ACA’s regulations which stopped competition and drove up premium costs.  Congress is leaning towards unlikely passing the stabilization bill.

Insurers are expected to announce the premium price hike sometime in the fall.