Brad Wagnon, Communications Network, Inc. Muncie, Ind.
"My company pays 75 to 80 percent of the premiums which have gone up about 40 percent in the last two years. My employees are struggling and my company is struggling to continue to pay for health insurance. I would be very much in favor of association health plans, because they would increase our buying power when it comes to health insurance. Currently, we're at the mercy of the insurance carriers who treat us like dirt and don't really want our business. We have to constantly jump through their hoops just to remain on the policy."

Nancy MacKay, Copper State Specialties
Globe, Ariz.
"My health insurance costs increased 79 percent this year. As that was unacceptable, we looked around -- although there are few choices for a rural small business -- and found a provider whose premiums were 'only' 52 percent higher! Then, in the middle of our contract year, my husband turned 55, and his premium increased over $200 per month - 33 percent!!!!!! With me approaching my 55th birthday and my office manager turning 50, I'm sure that this will be the last year we'll be able to provide insurance. I'm afraid it will mean losing employees. We need to get AHPs passed quickly."

Gail Lindley, Denver Bookbinding Company
Denver, Colo.
Gail Lindley was forced to drop her 73-year-old company's 401(k) plan in order to continue to provide health insurance to her 45 employees. In addition to dropping this valuable benefit, she also had to ask her employees to contribute more to their monthly insurance premiums even as they accepted less coverage.

Ed Stanfield, Sr., Glenn Brunk Stationers, Inc.
Springfield, Ind.
"We purchased our business in 1998. At the time, there had never been group health insurance. We felt group health insurance was something that we needed to offer our employees as it was the best way to get medical coverage. With a staff of eight, we will never be a large group, but we nevertheless have a need for insurance. In 1998, our coverage cost approximately $1,250 per month. Now, five years later, we are paying just under $2,300 for the same coverage. In addition, we've been told we can expect an increase of about 20 percent for 2003. $27,600 per year for medical coverage for four single individuals and two families is outrageous!"

Steve Drier, Houston Performance
Houston, Texas
"I pay $818 a month for my family, 2 adults and 2 children. We have no prescription plan, no co-pay for doctor visits, and they don't pay for anything unless it's over $2000. Every year the rates jump up $2400 and they give me less coverage."

Debbie Flood, Melron Corporation
Schofield, Wisc.
"The skyrocketing costs of providing health insurance for employees are unquestionably an obstacle to future reinvestment in the business. We have experienced 30 to 33 percent increases in our premiums in the last two years. We are expecting similar or greater increases when we begin the renewal process this year. In 2002, health insurance costs will exceed 5 percent of sales. By comparison, our power cost is less than 2 percent of sales.

"We currently have 24 full-time, permanent employees eligible for our health insurance benefit. Many of them are insured through their spouses so the number of employees on our health insurance hovers around 15. This number is actually down from 1996, yet the cost has risen dramatically.

"Our employees pay approximately 20 percent of their premiums and the company pays the rest. In 1996, the business's portion of the health insurance premiums was $37,484. Our cost for 2001 was $93, 400. Keep in mind that this was for only about 15 participants with an average cost of $6,227 per participant per year. For 2002, that average cost rose to $7,656, and the company's cost rose to $114,840. In order to continue to invest in productivity, our health insurance costs must be contained."

Rochelle Balch, RB Balch & Associates
Glendale, Ariz.
Rochelle Balch is not looking forward to renewing her health insurance plan this March. She has been told to expect a 25 percent increase in her already outrageous premiums. In the past, Rochelle's company has been able to pay for insurance premiums for employees and their families, but with the rising costs of health insurance, Rochelle is now only able to cover her employees' insurance premiums. One employee and their family used to cost $514 per month; now, that cost is $679 per month. One employee alone used to cost $220 per month; now, the same employee costs $279 per month. While Rochelle's company has been reviewing other plans, some employees have opted to drop their coverage because of the high costs, and Rochelle has been forced to hire employees at part-time, hourly wages to save on health insurance.

Pamela Rees, Wm. Rees Instruments
Rising Sun, Ind.
"We were stunned to receive our insurance renewal this year and find that our costs have gone up 41 percent! We're a small company with nine employees and up to this point, we've always offered full coverage for our employees in addition to vacation, sick leave, family leave and other benefits. We feel we have to offer a substantial benefit package to compete with nearby large employers. But a 41 percent increase is a direct blow to our bottom line. How can we be expected to continue to survive like this when the playing field isn't even? We MUST have AHPs in order to continue. There is no higher priority for our business."

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