Sole props angry about Blues' 15% surcharge.

Crain's Detroit Business, October, 2000 by Barkholz, David

Sole proprietors, who locally tend to buy their health insurance through trade associations, are up in arms about a 15 percent surcharge that Blue Cross and Blue Shield of Michigan is levying next year on their premiums. The surcharge will about double next year's increase to 30 percent for these small-business and shop owners already reeling from average premium hikes of 25 percent in 2000 and 16 percent in 1999.

``Our phones are ringing off the hook,'' said Edward Deeb, who directs two Warren-based business associations that offer group insurance and other services to sole proprietorships and small businesses. In a letter to sole-prop subscribers this month, the Blues said the additional ``rating factor'' of 15 percent was needed to bring premiums more...