Rapidly rising rates for health care coverage are pandemic throughout the nation, and the impact is especially acute within the aftermarket. Employee health insurance plans are a business necessity if an operation hopes to keep its valued workers. The costs, though, have some companies facing critical conditions with no cure in sight."We're getting killed by this," says Steve Hoellein, president of Felt Auto Parts Co., Inc. and Felt Automotive Machine Shop, Inc. of Ogden, Utah.

"My health insurance went up 20 percent this year," Hoellein reports. "For a smaller business like mine that's equal to $1,000 a month. It's hard to absorb right away, and I don't have a lot of answers about what we're going to do. It's getting tough to retain your long-term employees. Our biggest concern is health insurance."The two Felt companies employ 24 people and operate six vehicles.

Two employee spouses have ongoing medical needs.Premium costs are split 50-50 between management and the workforce. "We're all in this together," Hoellein points out.Shopping around for a better rate has thus far failed for the Felt enterprise. "If you put it up for bid, another insurance company will bid it sky-high," he says. Brokers frequently cold-call offering bargain rates, but the family illness issues are akin to a quarantine notice. "They're gone--you never hear from them again," Hoellein recounts.