Small businesses deserve affordable health insurance
04 03 08 - 18:16
By Carl Hum
Chamber of Commerce president
Tuesday, March 4th 2008, 4:00 AM
Be our guest
For the past few years, the increasing cost of health insurance premiums has been consistently ranked in the Brooklyn Chamber of Commerce's annual Membership Survey as one of the top three challenges to small business growth and expansion. The heavy premium costs and ongoing increases mean unpredictability, and most small businesses need to eliminate as many uncertainties as possible to turn a profit.
The numbers reflect this thinking - less than half of New York City residents have employer-sponsored coverage. Considering that more than 90% of New York's businesses are deemed small businesses (composed of 50 employees or less), this issue speaks directly to the survival and sustainability of our economy's primary driver.
It is not that small businesses do not think health insurance is important. In fact, a recent health insurance survey conducted by the Chamber showed that an overwhelming number of small businesses support universal health care. Our small businesses know that long-term growth is tied to retaining valuable employees. That, in turn, means including health benefits as part of employee compensation packages. Businesses that do not offer health benefits are prone to high employee turnover and increased costs associated with hiring and training new staff members.
At the same time, our health insurance survey revealed that many small businesses do not support mandates associated with universal health care. These businesses are concerned about the availability of affordable health insurance options and the ongoing high rate of premium increases that have far outpaced inflation and profits for many small businesses.
Until a universal solution is crafted either at the national or state level that truly accounts for the concerns of small businesses, we need to enable the small business community with a program that offers its employees affordable health insurance right now. Avoiding this problem will only stifle potential business growth and add to the groaning rolls of over 2.2 million uninsured New Yorkers. Complacency will also contribute to higher medical costs associated with caring for the uninsured in our local emergency rooms instead of at a physician's office, where potential problems may be identified before they become more serious or life-threatening.
The interim solution, however, is creating and supporting low-cost health insurance plans that businesses can afford. Brooklyn HealthWorks, the Chamber's health insurance program, is one such example. While not for everyone, it makes good business sense for many employers. At approximately $220 per individual per month, HealthWorks is one of the least expensive options available. Created in 2004 with the help of state Sen. Martin Golden and Assemblyman Joseph Lentol, Brooklyn HealthWorks is a private-label Healthy NY insurance program aimed at middle-income workers. In this model of public-private efficiency, the Chamber's program subsidizes the insurance premiums for these workers to make coverage affordable and accessible.
Recently, Council Speaker Christine Quinn proposed to expand Brooklyn HealthWorks to Manhattan and Queens for the first year, followed by citywide expansion. The Chamber is encouraged to hear that the New York City Council understands the need for small businesses to offer affordable health insurance in order to grow and remain sustainable, and we look forward to working with Speaker Quinn, the Bloomberg Administration, state insurance officials and our partners in other local Chambers of Commerce to make this expansion happen. The Chamber is excited to take on this challenge.
Carl Hum is president of the Brooklyn Chamber of Commerce