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Local company sees different impact of health care changes

Rochester, N.Y. - Lee Drake is the C.E.O of OS-Cubed, INC. in Rochester.

He has a total of five employees, four of them who were always covered by health insurance he provided.

I have a family, I have a kid at home and all my employees have families so if they're ill, that affects their productivity and I feel it's just as important for their economic interest to be protected as it is for mine, Drake said.

Earlier this year Drakes company received a letter from Excellus informing them it was cancelling the company's plan because it didn't meet the Affordable Care Acts requirements.

Instead, the old plan would be replaced with a new one.

Under the company's current plan set to end this year, Drake paid about $1,300 per employee, that's about $5,200 each month.

Under the new comparable plan Excellus is offering staring January 1, 201, Drake would pay a little more than $1,200 per employee which would come out to $4,900 - slightly cheaper than the old premium monthly costs.

Ive owned companies for 17 years and worked in companies for over 30 years and in no year in the last 30 have health insurance costs gone down, Drake said.  So from our point of view, we were already saving money even if we didn't implement the shop system and allow our employees to find other options.

But because Drake has a small company he said he could only offer limited plans.

Thats one of the reasons why he decided to use the New York State exchange site for his employees.

It means my employees can shop and decide what makes the most sense for their family, Drake said.

Because the company is using the exchange sites, Drake shifted some of the costs into his employee's salary so they can shop the system.

If workers find a cheaper plan, they can pocket the money, essentially earning a raise or the can choose an expensive option, and supplement the cost with that extra money.

 

 
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