Health care costs in urban areas are arguably higher than those in rural areas.

For that reason, The Affordable Care Act allows states to establish different geographic rating areas for the small group and individual markets; Wisconsin has 16. (Here’s a link to a two page map and chart.)

Let’s just say you’re looking to move your growing business. There’s space for lease at 4480 N 124^th Street, which is in Milwaukee county, or rating area 1. There’s also space across the street at 4475 N 124^th Street; that’s in Waukesha county, or rating area 12.

Your health insurance premiums in rating are 12 would be about 6.5% lower than for rating area 1; for your 38 employees the difference is over $21,000!

For small groups, it doesn’t matter where employees live (unless they’re out of state); premiums are based on where the business is domiciled.

Now don’t get any silly ideas. Your employees can not work out of a post office box!

 

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Jon Rauser 
President, The Rauser Agency
Agent Owner & Vice President, Robertson Ryan & Associates