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Presentation by Terry Gardiner Small Business Majority

Exchanges – Attracting Small Businesses. Presentation by Terry Gardiner Small Business Majority. Small Business Landscape. 5.9 million employers with fewer than 100 employees employ 43 M nationally 80% (4.8 M) have fewer than 10 employees

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Presentation by Terry Gardiner Small Business Majority

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  1. Exchanges – Attracting Small Businesses Presentation by Terry Gardiner Small Business Majority

  2. Small Business Landscape • 5.9 million employers with fewer than 100 employees employ 43 M nationally • 80% (4.8 M) have fewer than 10 employees • 54% (2.6 M) of employers with fewer than 10 employees do not offer health coverage • Most small businesses are very small and lack sophisticated HR departments • Average employer in Connecticut exchange has 8 employees

  3. Employer Health Coverage Choices • Purchase health coverage through the exchange • Purchase health coverage in the outside market • Maintain a “grandfathered” health plan • Do not offer health coverage Will the exchange offer “value” – lower price; better coverage; better services?

  4. Effective Outreach & Education • Only half of employers belong to a business group • IRS postcard helped makesmall business aware of the tax credit • Trusted voices of peers – historical sources: • brokers, business groups, business media

  5. Effective Outreach & Education • Navigators in ACA can work for business • Massachusetts Fishing Partnership Health Plan lowered uninsured rates from 43% to 13% • Focus groups & other direct contact in process to ensure needs of small employers are met

  6. Single Point of Entry for Employers • All necessary information for employer and employees to make decisions on coverage • One application • One premium payment & detailed accounting • One source for enrollment changes

  7. Single Point of Entry for Employers • Qualification and calculation of the small business tax credit; state programs • Coverage of out of state employees • Coordinating coverage of Medicare-eligible employees • Provides additional “HR” services such as Cobra administration, Section 125 service, HSA/FSA/HRA

  8. Role of Insurance Brokers • Recognize different role of brokers (agents) for individual and small group markets • Brokers will have ongoing role with small business selling other products

  9. Role of Insurance Brokers • Initial launch and reception has proven critical for both employers and brokers • Balancing broker compensation and services with competitive cost to employers will be challenging • Model – Washington Health Insurance Partnership • http://www.hip.hca.wa.gov

  10. Other Measures to Attract Business • Defined benefits option – Utah & Montana • Contributions by multiple employers – Utah • “Free choice” voucher • Support of larger businesses

  11. Health Reform Info for Small Businesses Frequently asked questions: http://smallbusinessmajority.org/hc-reform-faq Small business healthcare reform summary: http://smallbusinessmajority.org/_docs/resources/SBM_whats_in_it_for_small_biz.pdf For more information: Terry Gardiner National Policy Director Email: tgardiner@smallbusinessmajority.org

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